Question

In the chapter ‘Democracy’, you have read that a democratic government is accountable to the people and is expected to act in their interest.

• According to you, how should a democratic government decide when and how much it should intervene in markets to protect people’s welfare?
• Whose voices should a democratic government consider while making such decisions consumers, producers, workers, or others? Why?

Answer 1

• A democratic government should step in when markets do not work properly to promote fairness, protect consumers and producers, and ensure access to essential goods and services. However, such intervention should maintain a balance between public welfare and the efficient functioning of markets.
• The government should also take into account the opinions and interests of all stakeholders, including consumers, producers, workers, and others. This helps ensure that its decisions are fair, balanced, and beneficial to society as a whole.