Ostrem ch.4 question 7

After reading Ch. 4 I have learned about problems that the governments can cause in the economy (however the government is most definitely still needed in the economy). Charles Wheelan did a good job of presenting areas where the government should keep out. He says "The less the economy is left to politics, the better" (Wheelan 87). Politicians have their political careers and their supporters to think about. They will not always make the smart decision for the economy. An example of this is the German-Russian museum at the birthplace of Lawrence Welk. The government set aside $500,000 for this museum. Is this really a public good that is beneficial to the people? And then $100 million was spent on a search for extraterrestrial life. Is this really what our taxpayer money should be spent on. Wheelan also talked about the advantages of tax cuts.When the government cuts taxation, work ethic, investments, and risks (which can be healthy) increase. Consumers will have more money in their pockets and this will help the economy grow.