Additional case study: government intervention

In Germany in 2009 there was aconsiderable debate about the extent to which the government should be intervening in the economy. For example, its citizens were worried about the future of Opel, aGerman car brand that was part of ailing General Motors. Some wanted the government to make sure jobs were saved no matter what. Others, however, were more hesitant and worried about becoming the government becoming too interventionist. Traditionally since the Second World War the German government has seen itself as areferee in market issues and has avoided trying to control parts of the economy. It would regulate anti-competitive behaviour, for example, but not try to run many industries. However, in the recession of 2009 when the economy was shrinking the government was forced to spend more to stimulate demand and hat to intervene heavily to save the banking sector from collapse. The government also had to offer aid to businesses to keep them alive.

what are the arguments againts government intervention in an economy ?