To what extent is government intervention in a developed economy like the UK healthy?
Government intervention is when actions are taken by a government in order to affect or interfere with decisions made by individuals, groups or organisations regarding social and economic matters.
The issue of privatisation and government intervention are at the forefront of the debate about the extent to which governments should intervene in their economies. In the UK in the 1980s to 1990s the conservative government was led by Margaret Thatcher and argued that the state’s role in the economy should be minimised to allow markets and businesses to operate with the maximum degree of freedom. In part, this was achieved through privatisation, but also by the reduction of government subsidiaries and grants to industries and by legislation limiting the state’s role in business matters. For example, wage councils that are responsible for setting the wages of many low-paid workers were abolished and regulations governing markets such as telecommunications and financial services were relaxed allowin...