Like other businesses, the government spends and makes money, consumes goods and services, and employs people. The government has many roles in the U.S. economy. The military, policy, most schools and colleges, health centres and hospitals and highway and bridge construction are all government activities, research and space exploration require government funding. The classical economic were in view that the only objective of taxation was to raise government revenue. Federal, state, and local governments raise funds directly through taxes and fees. In every country, the government takes steps to help the economy achieve the goals of growth, full employment, and price stability. BRANDVOICE. Of course, there is contro­versy among economists regarding the optimal level of government intervention in the economy. The US economy is often referred to as a consumer economy. Since 1870, the US economy has been the largest economy in the world. Protection of private property / national security. Storytelling and expertise from marketers ... the economy, and even global stability. Tim Paydos Brand Contributor. In order to restore economic stability, policymakers must focus on restoring the institutional role of governing. In my humble opinion, the role of government is not to try to create jobs. 1. Rather, governments should establish the playing field in such a way that the private sector will operate in its ruthlessly efficient manner to exploit -- and, in so doing, hire a lot of people. The Role of the Government in the US Economy. Main functions of government. In mixed economies, such as the United States, the government is responsible for using laws to control or break up business monopolies. They often borrow money from the public by selling securities, such as bonds. The role of the government is to ensure basic law and order, through ensuring the rule of law. These are the reasons governments intervene in the economy. Without a government people a government would not be a government. Discuss the government’s role in managing the economy. In the United States, the government influences economic activity through two … If a country has a problem with crime, then it will discourage investment and the quality of life. Governments must provide a solid base, institutions, resources and other useful measures to fuel the economy. Government can provide a stable environment for economic growth when it … The government plays a very important role in a modern economy. The proper role of government in a capitalist economic system has been hotly debated for centuries. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Because the country has historically encouraged innovation and private ownership of businesses, the US economy has boomed. Start studying 5 Roles that Government Plays in the Economy. IBM. 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