Essay about Business

1542 Words Jan 22nd, 2014 7 Pages
The United States exists in a capitalistic economy meaning that private enterprise is based on fair competition, economic freedom, and private ownership therefore; business is the heartbeat of our economy. Everything from manufacturing, health care, sales, and agriculture involves business in some way. Businesses provide jobs and produce goods and services that we depend on every day (What Role Does Business Play in Our Economy..?). They pay state and federal taxes to the government on their services provided. The taxes paid by businesses and the people employed by them allow the government to function. Looking at businesses in this way you can clearly see that business is a pivotal part of the economy.
Within our economy two types
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Nonprofits are similar to for-profit businesses in the concept that they both employ people, both offer goods and services, and both take in revenue (Brown, 2012).
Almost every market trend has an underlying economic factor involved. Economic trends are most noticeable within the stock market where we see the biggest impact of how our spending trends affect the price of a company’s stocks. Although the implementation of fiscal policy takes an average of three years to see significant results, the government can have a major impact on the economy. If the government lowers taxes, over time you will see an increase in spending by taxpayers. This money will go into the economy because the taxpayers will have more income left over to spend on goods and services. If however taxes go up, you see a vast decrease in spending by the American taxpayer. Monetary policy is the way the government managed Federal Reserve controls the money in the U.S. economy. If the Federal Reserve changes the cost of money through inflation, it changes the amount of money spent by consumers. Today, we are somewhat seeing a recovery in our economy since the recession of 2009 but unemployment rates are still high (Bernanke, 2010). The government reports to us that unemployment rates are lower however, there are reports to dispute this fact informing us that in the unemployment count, the government does not include

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