In mixed economies, such as the United States, the government is responsible for using laws to control or break up business monopolies. In every country, the government takes steps to help the economy achieve the goals of growth, full employment, and price stability. Rather, governments should establish the playing field in such a way that the private sector will operate in its ruthlessly efficient manner to exploit -- and, in so doing, hire a lot of people. In order to restore economic stability, policymakers must focus on restoring the institutional role of governing. Government can provide a stable environment for economic growth when it … 1. Governments must provide a solid base, institutions, resources and other useful measures to fuel the economy. The military, policy, most schools and colleges, health centres and hospitals and highway and bridge construction are all government activities, research and space exploration require government funding. Tim Paydos Brand Contributor. Because the country has historically encouraged innovation and private ownership of businesses, the US economy has boomed. Discuss the government’s role in managing the economy. Start studying 5 Roles that Government Plays in the Economy. Storytelling and expertise from marketers ... the economy, and even global stability. Since 1870, the US economy has been the largest economy in the world. They often borrow money from the public by selling securities, such as bonds. If a country has a problem with crime, then it will discourage investment and the quality of life. In my humble opinion, the role of government is not to try to create jobs. The government has many roles in the U.S. economy. The success of government is not in bureaucracy’s hands but in the hands of the general public. A mixed economy is comprised of private and publicly owned businesses that are regulated by governmental organizations. Like other businesses, the government spends and makes money, consumes goods and services, and employs people. The classical economic were in view that the only objective of taxation was to raise government revenue. Of course, there is contro­versy among economists regarding the optimal level of government intervention in the economy. IBM. Protection of private property / national security. The Role of the Government in the US Economy. But with the changes in circumstances and ideologies, the aim of taxes has also been changed. BRANDVOICE. The US economy is often referred to as a consumer economy. Main functions of government. Federal, state, and local governments raise funds directly through taxes and fees. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The government plays a very important role in a modern economy. Without a government people a government would not be a government. 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