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Essay / Research Paper Abstract
(10 pp) How can Government's proper role in the
economy be defined? Is there any reference point
other than historical contingency or the wishes of
politicians? In addition to providing enabling
conditions for the economy, such as a proper legal
system to support property rights, a monetary
system, and security, government can also be a
regulator of business, a director of business in
the sense of setting policies or subsidies that
will favor certain sectors over others, and
through Government-owned enterprises even a
participant in business. Is there a way to tell
when to draw the line for government?
Bibliography lists 5 sources.
Page Count:
10 pages (~225 words per page)
File: D0_BBgveconR.doc
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Unformatted sample text from the term paper:
regulator of business, a director of business in the sense of setting policies or subsidies that will favor certain sectors over others, and through Government-owned enterprises even a participant in
business. Is there a way to tell when to draw the line for government? Bibliography lists 5 sources. BBgveconR.doc
The Governments Economic Role Written by B. Bryan Babcock for the Paperstore, Inc., November 2000 Introduction How can Governments proper role in the economy be defined?
Is there any reference point other than a historical one, or the pork-barrel wishes of politicians? Setting limits on the role of Government appears difficult, since it seems
to have its fingers in all the pies. Yet there are things that we want government to do such as supporting the economy through a valid monetary system, an
appropriate legal system and valid security. Government can also choose to be involved in business, either as a "regulator," a "director," or an owner. As a regulator it would
be in charge of setting policies or subsidies. As a director it might determine quality controls or assessments. And as a responsible owner of business, it too would be
subject to all regulations and laws as other appropriate business are. Do we have any clear guidelines where defining "lines for government participation," should be drawn? What we have
first observed is that there are some areas where government may repeat some actions already being done by business or the private sector. A starting point for examining Governments "proper"
role in the economy might therefore be, to look at the things, which only Government can do. Private businesses may not be able to provide certain types of services, nor
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