Standard Four Economics Project
How the United States Government...
Promotes And Secures Competition In A Market Economy
The government promotes and secures competition in a market economy by preventing firms from gaining monopoly power. By keeping these from gaining too much power over smaller companies and in turn ensuring they will not drive out the competition. They will not be able to control the economy in their favor.
Protects Private Property Rights in a Market Economy
The government provides legal help and backing to many private property rights matters. The government publically recognizes the rights. The cost of establishing private property rights may be too high so, a person does not have the power to effectively enforce private property rights.
Promotes Equality in a Market Economy
The government promotes equality in a market economy by ensuring that if one works harder to make more money they will be able to afford more. The equality comes from the fact that one can have what they deserve. If one chooses not to work, they will not be able to purchase what they want.
Provides Public Goods and Services in a Market Economy
The government provides schools, police services, roadways, etc. in a market economy. The government gets the money for these things by establishing a tax every citizen must pay. Although the tax one pays may not effect he or she directly, it benefits the society as a whole.
Resolves Externalities and Other Market Failures in a Market Economy
The government uses multiple techniques to try to resolve a market failure. The government sometimes uses, a what is called a subsidy, a grant from the government to promote production. Taxes are also a major technique used to resolve market failures.
Stabilizes and Promotes Growth in a Market Economy
The government promotes economic growth through the power of innovation. Job creators take risks and invent jobs to keep the market stabilized. The promotion of economic growth is a necessity to the advancement of the nation's future generations and the economy they will have to work to secure.
Uses Regulations and Deregulation Policies to Affect Consumers and Producers in a Market Economy
Economic regulation deals with quality of service, energy and entry conditions in specific sectors, such as transportation or communications.When the government deregulated industries such as airlines, trucking, railroads, natural gas and banking in the 1970s, the intent was to give these industries more power to build the economy and reduce the cost of government subsidies, and ultimately give consumers more benefits through competitive pricing and better quality products and services.