Government Role In Economy Essay

742 Words 3 Pages
Our American Government has an important role in the Economy, whether it is doing it as its best or not, we cannot deny how important it is. “Economics, as Mr. B said in the lecture, cannot be understood apart from politics and vice versa”, so in order to understand how our economy works we have to learn the role our government has. In this essay I would like to examine the role of government in economy, contrasting the two terms from the balancing act: Efficiency and Equity. As a feedback it is important to mention that we have a mixed economy and that the U.S. is characterized by having a public sector, a government sector and a private sector. First of all, government plays as regulator of private
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Also, we see that many business owners as we learn in the “take the money and run for office” assignment are involved in politics, who guarantees us that we are being protected and that the equity part is really important to them? Second role government plays in the economy is as a promoter of economic interest, for example loans, tax breaks, deductions, tariff on foreign goods, investments in education, transportation and defense, labor laws like unemployment benefits and social security. Compared to other countries like Mexico for example, the U.S. is doing a lot better job. As an example I would like to consider unemployment benefits. If you become unemployed in the U.S., you are most likely to get certain amount of money for certain amount of time. In this case I believe government is moving to the right path in equity because it is providing assistant to people in need, mostly regular working classes. To conclude I would like to cite this quote from the lecture “ we haven’t given enough attention to the equity part, to make an economy that works for us not that we work for the economy you want markets that are our servants not our masters”. (Dr. B, Role of Government lecture) we lived in a system designed by a few, we need to find ways of making our economy work for the vast majority

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