How should the U.S. government carry out its economic roles?
The government plays a limited but important role in the economy. It protects property rights, regulates the marketplace, corrects market failures, and promotes the economic well-being of the American people.
How does the government protect property rights? The government is empowered by the Constitution to protect private property rights. It does this through the court system, police forces, and the Patent and Trademark Office. The government may limit property rights through its power of eminent domain.
What regulatory roles does government play in our economy?pan> The government uses its regulatory power to maintain competition; safeguard consumers, savers, and investors; and protect workers. It carries out these tasks through regulatory agencies, which create and enforce standards and regulations for industries.
How should government address externalities and public goods? The federal and state governments implement a variety of policies to limit negative externalities and support positive externalities. They also provide public goods that are deemed necessary or desirable.
What does government do to promote economic well-being? During the Great Depression, the role of the government in the economy greatly expanded. Since then the government has taken on even more responsibility for the economic well-being of its citizens. When necessary to preserve economic stability, the government stimulates the economy by spending more money. The g