Unemployment and Economic Freedom

The neoclassical argument in economics is that government intervention in the market isn’t necessary. The idea that neoclassical economists express is that government intervention leads to a rise in unemployment. There is strong data supporting this argument, as the economy of Singapore is the world’s second most unregulated government and has an astonishingly low 2.1% unemployment rate. Contrary to this, Zimbabwe has a very controlled economy, and as such has an extensive 95% unemployment rate. Using this data, neoclassical economists argue that government intervention in the market only produces detrimental results.

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