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Government Roles

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The government’s role in the market economy includes having the power to coerce and force market improvements and efficiency, enforce laws and regulations and maintain and prevent individuals and businesses from gaining an advantage over another individual or business (McConnell, Brue, & Flynn, 2015). In addition, the government has to power to help improve allocative and product efficiency, modify income distributions, and promote economic stability and growth (McConnell, et al, 2015). Even though the government’s role seems large; the government has limited power, their most crucial role is to correct market failures. Therefore, based on the economic conditions of today, I think the government has done everything to degrade our economy. The federal pay rate remains the same in some areas, state wages are the same, and on top of all that groceries, rent and other bills keep getting higher; all while we struggle to achieve a better life and maintain our sanity. I think that the government needs to intervene on raising minimum wage, create more opportunities for all to obtain a better life with equality, and reduce economic destruction – unemployment and recession.
Government intervention continues to spread like wildfire; yet, there are some justifications given for the intervention such as holding businesses and individuals accountable for fraud, maintaining budget deficits, maintaining trading regulations, supporting banking and local entities, and maintaining fiscal and monetary policies (McConnell, et al, 2015). On the other hand, some reasons for less government involvement in the market economy includes politics, decision making skills are not present – tend to make the wrong decisions, and citizens are not allowed to make their own decisions especially in abortion rights (McConnell, et al, 2015). In addition, other reasons that some want less

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