The republican form is defined as one in which the powers of sovereignty are vested in the people and are exercised by the people, either directly, or through representatives chosen by the people, to whom those powers are specially delegated.

Republic: “A state in which supreme power is held by the people and their elected representatives…” Democracy: “A system of government by the whole population or all the eligible members of a state, typically through elected representatives.”

“It [the difference] is that in a democracy, the people meet and exercise the government in person: in a republic, they assemble and administer it by their representatives and agents. A democracy, consequently, must be confined to a small spot. A republic may be extended over a large region.”

What are the Advantages of Republican Government?

• Fairness. They believed that laws made by the representatives they elected would be fair.
• Common welfare. The laws would help everyone instead of one person or a few favored people.
• Freedom and prosperity. People would have greater freedom and be able to live well.

UN member states and observers

A republic allows greater freedom and prosperity. Economic pursuit benefits the entire nation and people are able to live well. When government serves the interests of the entire country, we say it is serving the common welfare. There is wider participation in the political process.

democracy

Disadvantages of Republican System of Government

• Republican systems can be expensive to operate.
• Republican government works best in small communities.
• Laws made by legislature must pass through certain laid down processes without which they could not become laws.

The pros of having a republic type of government, include widespread cultivation of civic virtue, increased liberty and just laws, while the cons include mass corruption and government inefficiency.

Disadvantages include: (1) states and local governments compete in “race to the bottom,” (2) federalism does not bring people closer to the government, (3) citizens suffer because of inequalities across states, (4) policies in one state may undermine policies in another state, (5) overlap of responsibilities among …

Governments intervene in markets to address inefficiency. In an optimally efficient market, resources are perfectly allocated to those that need them in the amounts they need. The government tries to combat these inequities through regulation, taxation, and subsidies.

Federalism also comes with drawbacks. Chief among them are economic disparities across states, race-to-the-bottom dynamics (i.e., states compete to attract business by lowering taxes and regulations), and the difficulty of taking action on issues of national importance.

Disadvantages of government intervention

• Government failure. Government failure is a term to describe how government intervention can cause its own problems.
• Lack of incentives.
• Political pressure groups.
• Less choice.
• Impact of personal freedom.

Government failure, in the context of public economics, is an economic inefficiency caused by a government intervention, if the inefficiency would not exist in a true free market. It occurs only when governmental action creates an inefficient outcome, where efficiency would otherwise exist.