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Government Regulations
The Economy and the Role of the Government
by Chris Parry (Write for us!)
(Click on the links within the article to get definition of that word)
Because the United Stateseconomy is driven by perhaps
the best example of a consumer-based society and a
capital-driven citizenry, it is important to understand and interpret what role the US governmentplays in the
operations of our economy. Historically, the degree to which the government has played a role in the economicstructure
of the country has defined the large differences in the outlook and well-being of the citizens of the United States.
Whether this meant the institution of greater social programs and economic safety-nets under FDR's "New Deal,"
or the lessening of governmental influence in the capitalist days of Reaganomics, the role of the US government
in the acquisition and redistribution of money in society is central to understanding the relationship between
resources and the citizenry.
Though the United States has been the world's foremost economic power for the last fifty years, it is not without
difficulty that the earning potential of such a vast landmass (and disparate groupings of people) is converted
into basic services such as universal healthcare or education systems. Though individual Americans normally pay
out a large
portion of their earnings in income tax, because the government is such a vast, complex system, it
is extremely difficult for taxrevenues to be converted easily into social services - social services being,
presumably, what taxes are for. The government, as a bureaucracy, naturally needs some of that money just to
stay up and running as well. However, the ways in which particular governments go about spending American tax dollars
is most illustrative of what the government's role in our economy is. At every election campaign we see the differing
opinions on what this role should be, usually with one party advocating less taxes and hence less government
spending, and the opposing party proposing higher taxes in favor of distributing money through sound governmental
planning.
What this all means for the economy and the government is that they are both dependent upon one another. Along with a
lessening of governmental involvement in social services, comes a more privatized, individuated society with lesser
social responsibility. However, with increased taxes or more governmental control over certain aspects of
social services, comes greater difficulty in how to properly distribute the funds from coffers.
But in the end it is the growth of the economy that is most often on the minds of Americans. Is the economy strong
and getting stronger? There are, of
course, differing philosophies on how to best create a successful economy
as well. Some believe that less taxation from the government will increase individual buying power and thus cause
businessprofits to rise. Others believe that the types of benefits that the government ought to use American
tax dollars to fund are essential to forming a strong, stable economy with less likelihood of overproduction or collapse.
Both systems of thought produce certain effects on not only the economy, but the mindset of American citizens.
Just which system is better in the long run is for the fortune tellers to find out, but it seems certain that
the future of the United States' economic prosperity will be contingent on the degree to which its enormous
government plays a role.
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