Role of Government
Chapter 12
GROWTH OF
GOVERNMENT
 The U.S. government employs more
people in the U.S. than any other
organization.
 The growth of government has taken
place as a result of 4 key factors:
1. Population growth – a larger population
requires more educational facilities,
increased road construction and repair,
more police protection, and larger
national defense forces.
2. Changing public attitudes – during and
shortly after the Great Depression
people began to recognize the need for
government intervention in the
economy.
3. Rising standard of living - once people
earn enough to meet their basic needs,
they then look for ways to fulfill their
wants, usually through increased
spending – as people spend more and
increase their standard of living, they
expect goods and services to improve –
that sometimes means more government
programs (Ex: growth in education, health
care)
4. National emergencies – a national
emergency such as war or an economic
crisis can cause the government to
increase in size.
 Spending by the federal, state, and local
governments in the U.S. in 1950 was
about $70 billion
 dramatic increases in the number of
government programs meant by 2003
total government expenditures had risen
to more than $3.5 trillion.
 The federal government spends the
largest share of this figure ($1.4 trillion) –
about ½ of federal expenses go toward
paying for insurance benefits (social
security, Medicare, retirement, etc.) and
interest on debts
 other federal expenses include national
defense, education, public hospitals, and
law enforcement.
 State and local governments also spend
large sums of money (an average of
about $3.3 billion a day or $38,274 a
second)
 state and local budgets are generally for
education, public welfare, road
construction, hospitals, police and fire
protection, etc.
 In the U.S., all governments regulate
business through rules and procedures
that guide economic activity
 government regulation has 3 main
purposes:
1. Preventing abuses – Ex: protects
workers from discrimination, unhealthy
working conditions
2. Protecting consumers – Ex: the Food
and Drug Adm. (FDA) protects people
from unsafe foods, medicines, and toys.
3. Promoting competition – Ex: prevents
the formation of monopolies (complete
dominance by 1 company in an industry)
 Individuals that do not agree with certain
government regulations have an
opportunity to change them – How?
 By voting
 Through political activism
 Participating in or supporting an interest
group, which is an organization of people
who work together to achieve their common
goals
 interest groups often give money to political
candidates or campaigns for them
 most interest groups advance their plans
through lobbyists (people hired to work for an
interest group) – lobbyists can be found in most
governmental facilities (Ex: Congress, state
legislatures)