Government and the Economy

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Government and the Economy by Mind Map: Government and the Economy

1. What does government do to promote economic well being?

1.1. They help keep economic well being by having a nation wide currency that maintains the same value. The banks loan money to people who want to start a businesses which then has an effect on our economy because that's how we have businesses and products. They don't just barrow to the producer by they also have a borrowing system for the consumer so they can make big purchases like houses and cars.

1.2. Congress in acted the economic stimulus which promotes economic growth and businesses activity.

1.3. bank loans

2. How does the government protect property rights?

2.1. It is the governments role to protect property rights because it is laid out in the Constitution.

2.2. The government does not just protect property rights for things such as land but your assets and peoples inventions and ideas.

2.3. property rights

2.4. "The economic concept of private property refers to the rights owners have to the exclusive use and disposal of a physical object. Property is not a table, a chair, or an acre of land. It is the bundle of rights which the owner is entitled to employ those objects. The alternative (collectivist) view is that private property consists merely of a legal deed to an object with the use and disposal of the object subject to the whims and mercies of the state. Under this latter view, the state retains ownership and may at any time regulate or even repossess the property it temporarily cedes to individuals." - Gary Pecquet from Foundation of Economic Education.

3. What regulatory roles does the government play in our economy?

3.1. The government plays a role in maintaining competition by having the justice department protect the anti-trust laws.

3.1.1. OSHA

3.1.2. "The Occupational Safety and Health Administration has proposed over $165,000 in fines for a Belton company after citing them for 50 violations during an inspection of their factory." -News Channel 25

3.2. The government protects workers by setting safety standards for workplaces through OSHA.

3.3. The government regulates banks to protect savers and investors by having the FICA insure that nearly all bank deposits for up to $100,000 per depositor.

4. How should government address externalities and public goods?

4.1. The government supports positive externalities such as subsidies from the government for education to help people pay for college. They also help with vouchers for families who can't afford to send their children to private schools. Another positive externality that the government provides is public provisions such as the U.S. Postal Service and federal air traffic control.

4.1.1. FAFSA

4.1.2. By Mike Whye / World-Herald Correspondent When someone first sees the Free Application for Federal Student Aid, often referred to as the FAFSA, it possibly looks as daunting to fill out as the annual federal income tax forms. However, answering the 100-plus questions spread over the application’s six pages can help finance a student’s college plans through grants, loans, scholarships and work-study programs. The application serves as the entry point for college students and prospective college students to apply for various types of federal, state and institutional financial aid to help pay for a student’s higher education.

4.2. The government also tries to limit negative externalities by command-and-control and market based policies.

4.2.1. Schedule

4.2.2. Budget

4.3. The government addresses public goods by deciding what public goods to give because no government can afford to give them all. They have toll bridge fees and taxes to help pay for some of the expenses but they really have to watch out for government failures because they waist a lot of money.

4.3.1. KPI's