GOVERNMEN

T AND THE
ECONOMY!
By; Chynna MaCayla Swayne

Mail
Highways
Waterways

SPENDING AND
TAXES:

WHAT GOODS AND SERVICES DOES

Electric
THE GOVERNMENT
PROVIDE?
Gas

Radio and TV Stations

Emergency Services

Auto licensing

Trash Services

Police Department

Public Library

Fire Department

City and State Parks

Disease and Heath

Education

Inspection
State, Country and City

Public Transportation

Government programs
provide people with
financial benefits:
Medical Care

SPENDING AND
TAXES:

WHAT ROLE DO ENTITLEMENT

PROGRAMS AND DISCRETIONARY
SPENDING PLAY IN THE GOVERNMENT
REGULATION OF THE ECONOMY?

Food Stamps
The single biggest are of state spending is
Housing (Section 8)
public welfare (entitlement services).
School Voucher
Programs
Small Business Loans
They are called entitlements because the
Subsidize Money for
College
Social Security
Disability

requirements for benefits are set by the

law.
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
Dont 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