PROVIDE GOODS AND
SERVICES
*Provide for many people at
one time
*Government provides
public goods so everyone
has access to them,
regardless of money
*Examples: Highways,
Defense
PROTECT THE
CONSUMER
*Establish guidelines that
protect the public health and
safety (product labels)
*Give people right to take legal
action against companies
*Create Federal Regulatory
Agencies to protect individuals
(EPA, FDA)
Role of Government in
the Economy
REGULATE THE MARKET
*Regulate natural monopolies
(cheaper to have one provider
then many)
*Make sure advertising is
honest and products are safe
*Watch over how companies
are doing business (FCC, FTC)
PAYING FOR GOODS
AND SERVICES
*Tax Revenue (16th
Amendment)
*Borrow Money
*Government Spending is
Greater than
Revenue=Deficit
*Government Spending less
than Revenue=Surplus
PROMOTE COMPETITION
*Prevent monopolies through
anti-trust legislation
*Encourage global trade
*Support business start-up with
tax breaks