Roles of the US Government in the US Economy Essay

How the US Government plays a role in our US Economy Fiscal responsibility is an important part of stability and the government must focus on maintaining the economic stability. As we all know, Government dept can quickly become a burden on the economy and weaken it. Macroeconomic policies change credibility of the government and strengthen political institutions. It is very important that our economy has credibility and stability because it’s vital to us Americans long term investment decisions that allow the US economy to grow. Government provide stability by ensuring to maintain stability of currency, enforce-defend property rights, and provide oversight that assures private citizens that their transaction partners in marketplaces are†¦show more content†¦A weak fiscal position can cause weak government ability to provide security for property rights, and makes it harder to borrow in the face of security crisis’s. Citizens receive value from governmentâ€⠄¢s role in making and enforcing laws that give citizens the opportunity to freely pursue opportunities. The US is a developed economy but don’t mean its government doesn’t need to retake reform measures. Having an orderly governing body allows private citizens to make long term investment decisions about their personal resources. The government involvement is vital because it provides the best opportunity to accomplish its national investment and growth goals through entrepreneurial spirits of all citizens. Government activities have a powerful effect on the US economy in stabilization and growth which is the most important are. The federal government guides the pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. They do so by adjusting spending and fiscal policy- tax rates- or managing money supply and controlling use of monetary policy-credits. It slows down or speeds up the economy’s rate of growth , which affects the level of prices and employment. After the Great Depression in the 1930’s, recession (high unemployment) wasShow MoreRelatedThe Government Should Play an Active Role in Managing an Inflationary Economy983 Words   |  4 PagesThe government should play an active role in managing an inflationary economy. I agree that the government should play an active role in managing an inflationary economy. Buck (2011), stated that â€Å"The overwhelming majority of economists around the world believe it is appropriate for the government to take actions to promote economic growth and maintain low unemployment and low inflation.† Parkin (2012: 522) described inflation as â€Å"a persistently rising price level† and price level as â€Å"theRead MoreThe Financial Balancing Act1315 Words   |  5 Pagesprovided in the article. 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