ent centuries, such as Karl Marx, have questioned the right of private property, and have called for an active part in controlling the generation and distribution of wealth. The marketplace and the government meet head-on in the division of authority in the creation and distribution of goods, services, and wealth. All economists, except the most conservative capitalists, believe that the government has some role in constructing and guiding the economy. The role of the government in economics is to assure that the economy of the country is able to express its culture and societal will.
Taxation is one of the primary policy functions that a government can use to stimulate or discourage economic activity. Indeed, governments require taxation to provide the necessary funding for needed projects. Ideally, it is hoped that taxation would be fair and all citizens would bear an equal tax burden based on their abilities and needs. However, capitalism has been able to develop concentrated wealth and this unbridled economic freedom has the possibility to create the perception of a shortage of resources. The sixteenth and seventeenth centuries were characterized by food riots as production increased the supply, markets agitated a sense of shortage, and the threat of unfair taxes interjected a sense fear into the system. The governments role in economics is to assure the fair implementation of tax laws and eradicate the fear of taxes. According to Rothschild, "Commerce will flourish only in a state with a regular administration of justice" (14). The governments role in taxation is to sustain a high degree of confidence in the application of the existing tax laws.
The governments role in economics, in regards to taxes, is the generation of confidence in justice and not directing society through tax encouragements. Governments often assume the role of directing a societys culture through a series of punitive taxes or rewarding credits. Taxes are often levied against a product,
Cite this document
(“What Role Should the Government play in economic life Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/343273-what-role-should-the-government-play-in-economic-life
(What Role Should the Government Play in Economic Life Essay)
“What Role Should the Government Play in Economic Life Essay”, n.d. https://studentshare.net/miscellaneous/343273-what-role-should-the-government-play-in-economic-life.
Cited: 0 times
While the history of man illustrates the need to cooperate in the marketplace and how mankind has depended on the exchange of goods for survival, modern economics…
The detailed study as this would definitely help the cause in understanding the requirements of different sectors and the government policies which determines the scope of the different government legislation on market efficiency in the near future. In the recent years, there has been a gradual instability because of the market volatility due to the different government policy and the detailed study would tend to give a great learning opportunity about this adverse scenario.
The concept of efficiency is at the epicentre on the finance concepts. The efficiency in the market is a term that is used to describe the market of financial assets as well as securities. The information prevailing in the market has the central role to play in this type of market structure.
The essay states the main components of the executive are primarily the prime minister, the cabinet and the civil service. These are the people who are closest to the common citizens and who are considered by the lay man as the ones who are responsible for determining the general welfare of the country as a whole.
These two policies may sometimes prove to be harmful to an economy in that many scholars argue that an economy should be left at a state of laissez faire. This is to say that a government should not interfere with the working of an economy.
These policies however have proved to be useful in the case where an economy is faced by high inflation or a recession; in this case the government will use an expansion ally or a contraction ally monetary or fiscal policy.
Since economics is thought of being the bridge between scarce resources and unlimited human wants, a holistic definition of economic growth would be to increase the efficiency of an economy. This happens as a corollary of growth where an economy will grow over time to the next higher level in terms of production of goods and services, employment, foreign trade and other macroeconomic factors.
Some of the levels of government include the central government, local government, state government and the federal government. The government can take various forms and this includes constitutional monarchy which is a government with a King whose power is strictly
According to the report economic and social structures of different regions has undergone far flung changes owing to the opening up of the economic system leading to large scale incoming of foreign investments from developed nations. The economic system of China in the light of globalization has undergone far flung changes.
s has led to the need for the government to establish various forms of regulations aimed at protecting consumers and investors, thereby avoiding creation of increased productivity draining on the country’s economy. The government has been responding to crisis based on consumer
The major aim of this study is to analyze the role that can be effectively played by the Libyan government and the Libyan Civil Society in order to enhance the humanitarian activities of the voluntary organization Libyan Red Crescent so that it is able to provide appropriate relief and health care to the affected victims.
30 pages (7500 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic What Role Should the Government play in economic life for FREE!