Impact of Government on US Economy

Who Runs the Economy?

Economy is controlled by forces of a global nature. And the influence of the government, not regardless of the ruling party, will be null and void. Rights in the economy can use resources in only one of four key features: you can produce, sell, influence the political process in the direct more resources for personal gain or to protect others from the redistribution of effort (Kincaid, 147-159).

The first two uses of production and trade in general welfare generate increases in the economy . In the language of economists, these actions represent positive sum (win-win situation). However, the last two efforts to redirect the flow of resources and protection efforts of those who seek to spread the wealth "of the game with zero or even negative sum. Add any value to spend time and effort, and therefore generate a lower standard of living for the people, as resources are diverted from production and trade. Governmental institutions, laws, rules, regulations, and judicial influence private decisions to allocate resources to these goals.

Impact of Government on the US Economy

Governments have three main instruments of control:

Taxes which serve to reduce private spending and thus allow public spending, for example, a trip to the beach. Taxes are applied to roads and bridges can maintain and build new roads, and bridges (Walker, 86-102)

Expenses, which induce firms or workers to produce certain goods or services. (As police protection or garbage collection.)

Regularization or control that leads individuals to undertake certain economic activities or to desist from. (As safety standards of a company, or pollution that can emit a company) state functions are actually four functions:

The Legal Framework

Set the rules of the market. It refers to the rules on contracts, obligations of trade unions and employers. (E.g., in the 19th century the companies were not responsible for the workers who got sick from work until the 20th century, the legal system has improved making companies legally responsible for their actions and products)

The Assignment

This is the microeconomic aspect of politics, focused on the what and the how of economic life. (For example, the price of tortillas, and sometimes the government makes decisions in supply and demand) (Zimmerman, 157-163)

The redistribution of income

The government decision making can be very efficient but at the same time gives rise to an income distribution highly unequal or unjust. (Ie The price per kilowatt of electrical ...