The Role of Government
Historically, government has played an important role in capitalism. The government collects involuntary taxes to raise funds to provide for public goods like education, national defense, and public highways. In addition, the economy sometimes needs a boost; at other times it needs to be slowed down a bit. That’s because although the free-market system generally works well, it’s far from perfect.
If left unchecked, the economic forces that make capitalism succeed may also create severe problems for some groups or individuals. The solution to these problems often requires governments to intervene by enforcing laws and regulations, fostering competition, contributing to economic stability, and spending for the public good.
Reference
If left unchecked, the economic forces that make capitalism succeed may also create severe problems for some groups or individuals. The solution to these problems often requires governments to intervene by enforcing laws and regulations, fostering competition, contributing to economic stability, and spending for the public good.
- Enforcing Laws and Regulations
- Fostering Competition
- Contributing to Economic Stability
- Spending for the Public Good
Reference
- Michael H. Mescon, Courtland L. Bovée, John V. Thill, Business Today, 9th edition, Prentice Hall, 1999
