Government Intervention

Government Intervention

Government interventions are actions that interfere with the outcome by changing the decisions made by the individual or a group concerning social-economic matters. They are meant to prevent its population from harm. These interventions affect the market economy intending to impact the economy beyond the regulations and restrictions positively. The government believes that greater equality is achieved by the redistribution of wealth and by creating equal opportunities for its population. One intervention is the supplemental nutritional assistance program SNAP, the largest and most popular antihunger and antipoverty program in the United States (U.S.). This program was initiated to alleviate hunger and malnutrition among low-income households (Heflin & Ingram, 2020). The government pays 100% benefits and has low rates of fraud and errors.

Analyze the arguments for government intervention as opposed to arguments for market-based solutions.Hint:See the information about market failures.

Supplemental nutritional assistance program SNAP is a government intervention program in the U.S. whose aim is to increase food security and reduce hunger cases by increasing access to a healthier diet for low-income families (Heflin & Ingram, 2020). The U.S. government previously invested a lot in treating lifestyle diseases like obesity, malnutrition, and diabetes, common in the low-income population. Since the initiation of SNAP, cases of death related to hunger and lifestyle illnesses have drastically reduced due to easy access to a healthy diet. SNAP has targeted infants, children, and women who are the most affected by nutritional deficiency diseases.

Examine who has been helped and who has been hurt by the selected government intervention.

SNAP relies on a private sector providing efficient food access through grocery stores and other retailers. This has enabled the purchase of items of preference and nutritional needs (Pino, 2020). This program has restrictions on unhealthy foods such as highly processed foods, soft drinks, and alcoholic drinks. It has positively impacted the low-income population through easy access to food. Children benefit by growing up healthy and cultivating self-efficiency. It helps needy families to transition to economic independence. The program is an effective way of responding during a disaster and economic downturn. However, SNAP hurts small-scale business establishments by the increase of administrative burdens in the restriction policies on market products. These restrictions reduce the purchasing power of its clients hence affecting the economy.

Examine externalities and unintended consequences of such intervention. For example, consider whether the SNAP program and health coverage for low-income families result in higher future tax revenues because low-income children grow up healthier and produce higher incomes over their lifetimes.

SNAP has shown a positive impact on the economy without directly affecting the market price of the commodities. This has been achieved through market promotion programs for farmers. It has led to an increased food business, hence easily availing fresh food (Bleich et al., 2017). Farmers have been funded through the SNAP program with specialty crop block grants for fruits and vegetables that contribute to maintaining good health.

Unintended consequences of SNAP are risks of changes in eligibility and effectiveness that may cause reduction and cut-off (Vega et al., 2017). This may result in deviation from their main goal of promoting food security. The effect of this is a hunger strike and nutritional deficiency diseases. It also affects the overall health of caregivers.

Analyze whether cost of the intervention you selected as a share of GDP or the number of participants is increasing,decreasing, or varies with the state of the economy, based on the cost trend(or number of participants) since its inception or since 2000.

The number of participants in this intervention initially increased due to the high population living in the low-income category. SNAP’s benefit was providing food, housing, social security, free education, and seeking employment for its participants (Ettinger de Cuba et al., 2019). Frequent episodes of disaster occurrence in the U.S. contributed to the increase in the number of participants. With an increased income of its participants and a reduction of disasters over time, the benefits were cut off or deducted, resulting in economic constrain which lowered the affordability of food, housing, and healthcare. Over time, the number of participants has decreased due to the cut-off of benefits. The chart below shows the population size benefiting from the intervention.

The population of SNAP beneficiaries gradually increased during the economic crisis and remained constant 1n 2010 and 2011 (Hamad et al., 2019).

Analyze credible economists’ opinions on the success or failure of the intervention that you chose in achieving its objectives.

SNAP has been a stimulus to the economy of the U.S. by giving dollars when the economy needs it, more so during economic downturns. It has created job opportunities for its population by increasing the number of farmers for food production, drivers that do transportation, and market attendants, boosting the country’s economy. Healthy food promotes the nation’s overall health, increasing the nation’s productivity. To sum it all up, SNAP has contributed to the growth of the economy.

Recommend whether the program should be continued as is, discontinued, or modified based on your conclusions. Defend your recommendation.

SNAP is a shared problem in the U.S. that has targeted the efficiency of food supplies to the low-income population (Nestle, M., 2019). To improve the SNAP program, I would recommend diet improvement for the recipients by including a healthier diet with fruits and vegetables. This improvement will better the health of all the participants. I would also recommend the introduction of market-based policies, which will increase the affordability of healthy foods. The program should stop banning certain foods and strengthen the purchasing power of SNAP benefits. This will allow markets to function based on market forces and improve the economy.

References

Bleich, Rimm, & Brownell, (2017) U.S. Nutrition Assistance, 2018-Modifying SNAP to Promote Population Health. The New England Journal of Medicine, 376(13), 1205.

Ettinger de Cuba, Coleman, Ahmad, Black, Frank, & Cutts (2019) trends in food insecurity and SNAP participation among I young children. Children, 6(4), 55

Hamad, Templeton, Schoemaker, Zhao, & Bhattacharya (2019) Comparing demographic and health characteristics of new and existing SNAP recipients. The American Journal of Clinical Nutrition, 109(4), 1164-1172

Heflin & Ingram, (2020) SNAP Reduced Risk of Premature Mortality among U.S. Adults.

Nestle, M. (2019). The Supplemental Nutrition Assistance Program (SNAP): history, politics, and public health implications. American Journal of public health, 109(12), 1631-1635.

Pino, (2020) Policy and perception impacts of SNAP access and eligibility: a view from the field. Renewable Agriculture and Food Systems, 35(4), 416-419.

Vega, Hinojosa, & Nguyen (2017) Using Andersen’s Behavioral Model to predict participation in the Supplemental Nutrition Assistance Program (SNAP) among U.S. adults. Journal of Hunger & Environmental Nutrition, 12(2), 193-208.

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Signature Assignment: Government Intervention Analysis

Analyze 1 of the following government intervention programs:

• Countercyclical fiscal policies (countering economic disruptions such as the housing bubble and the Great Recession)
• S. agriculture support programs
• Assistance for Low Income Families (choose 1)
• Housing vouchers
• Earned Income Tax Credit (including Child Tax Credit)
• Supplemental Nutrition Assistance Program (SNAP)
• Low income healthcare (choose 1)
• Medicaid (including Children’s Health Insurance Program).
• Affordable Care Act expansion
• Social insurance programs (choose 1)
• Old Age, Survivors, and Disability Insurance (OASDI)
• Medicare
• Unemployment insurance

Write a 700- to 1,050-word summary of your analysis. Identify the intervention and the market failure leading up to the intervention. Complete the following in your paper:

• Analyze the arguments for government intervention as opposed to arguments for market-based solutions.Hint:See the information about market failures.
• Examine who has been helped and who has been hurt by the selected government intervention.
• Examine externalities and unintended consequences of such intervention. For example, consider whether the SNAP program and health coverage for low-income families result in higher future tax revenues because low-income children grow up healthier and produce higher incomes over their lifetimes.
• Analyze whether cost of the intervention you selected as a share of GDP or the number of participants is increasing,decreasing, or varies with the state of the economy, based on the cost trend(or number of participants) since its inception or since 2000.
• Analyze credible economists’ opinions on the success or failure of the intervention that you chose in achieving its objectives.
• Recommend whether the program should be continued as is, discontinued, or modified based on your conclusions. Defend your recommendation.

Note: Use of charts and graphs is encouraged with appropriate citations. Any charts or graphs retrieved from the Federal Reserve Bank of St. Louis FRED website may only be included when the data sources used by FRED are U.S. government sources such as the Bureau of Economic Analysis or the Bureau of Labor Statistics.

Cite at least 2 academically credible sources.

Format your assignment according to APA guidelines.