GOVERNMENT
AND THE
ECONOMY!
By; Chynna Ma’Cayla Swayne
SPENDING AND TAXES:
Highways
WHAT GOODS AND SERVICES DOES THE
GOVERNMENT PROVIDE?
Electric
Waterways
Gas
Radio and TV Stations
Emergency Services
Auto licensing
Trash Services
Police Department
Public Library
Fire Department
City and State Parks
Disease and Heath Inspection
Education
Mail
State, Country and City Officials
Public Transportation
SPENDING AND TAXES:
Government programs
provide people with
WHAT ROLE DO ENTITLEMENT PROGRAMS
financial benefits:
AND DISCRETIONARY SPENDING PLAY IN
Medical Care
THE GOVERNMENT REGULATION OF THE
Food Stamps
ECONOMY?
Housing (Section 8)
The single biggest are of state spending is
public welfare (entitlement services).
School Voucher
Programs
Small Business Loans
They are called entitlements because the
Subsidize Money for
requirements for benefits are set by the law.
College
Social Security
Disability
This helps all people have a start to a better
life.
SPENDING AND TAXES:
HOW ARE EXPANSIONARY POLICES AND
CONTRACTIONARY POLICIES USED BY THE
GOVERNMENT TO REGULATE THE
ECONOMY?
Expansionary polices are used when the economy becomes sluggish, as in a
recession.
o Buying Government Bonds
o Reduce Banks Reserve Requirements
o Lowering Interest Rates
Contractionary policies are used to slow down a rapidly expanding economy –
it is used to curd inflation.
o Increasing Interest rates
o Raising Bank Reserve Requirements
o Taking Money out of Circulation
SPENDING AND TAXES:
HOW DOES GOVERNMENT ENCOURAGE
OR INCREASE COMPETITION AMONG
BUSINESSES?
 Encourage competitive bidding
 Break bid contracts into smaller ones
 Don’t require small companies to meet big company
contracts
Some politicians do not want competition because large
corporations give more in campaign contributions.
SPENDING AND TAXES:
HOW DOES THE GOVERNMENT
REGULATE PRIVATE BUSINESS?
The government regulates private business in many ways.
Economic regulation seeks either directly or indirectly to control
prices. The government seeks to prevent monopolies such as
electric utilities from raising prices beyond the level that would
ensure them reasonable profits.
The government sometimes uses anti-trust laws to prohibit
practices or mergers that would limit completion.
Airlines
Utilities
Cell Phones
SPENDING AND TAXES:
WHAT ARE THE DIFFICULTIES OF THE
GOVERNMENT REGULATION OF PRIVATE
BUSINESS?
A complex web of government regulations
shape many aspects of business operations.
Every year, the government produces
thousands of pages of new regulations.
In recent years, regulations have grown
tighter in some areas and been relaxed in
others.
Laissez-Faire
French term: “LEAVE IT ALONE!”
INFORMATION FROM:
In class work and notes
Building Citizenships / Civics and Economics
http://www.ehow/facts_5246169_examples
http://www.businessdictionary.com/defination
http://nz.answers.yahoo.com/questions/index
http://economics.about.com/ad/howdoestheeconomy
http://usembassy.de/gov/regulations