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Running head: PROPER ROLE OF THE GOVERNMENT IN MARKET SOCIETY1 Proper role of the Government in Market Society Student Name Professor Name Affiliation Date
PROPER ROLE OF THE GOVERNMENT IN MARKET SOCIETY 2 Proper role of the Government in Market Society The government has a limited role in the market economy like the United States of America. In the market economy, the invisible hand of the supply and demand play a crucial role since it determines the price of every product. It is the role of the government to play in overseeing how the economy is working. However, it should not interfere with the day to day functioning of an economy. It is the proper role of the government to make the overall terms and conditions that are
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Unformatted text preview:If the economy is undergoing a recession or downturn, it the role of government to stabilize the economy. Since the profit will have gone down, the private investors will decline because of economy contraction. Thus the government should step up and increase the investment thus compensation for the drop in the private investment (Bloch, 2014). Government should discourage negative externalities by making strict rules and regulations. It is upon the government to issue public good and services such as national security, defense among many others, these services cannot be provided by the private sectors in a market economy. PROPER ROLE OF THE GOVERNMENT IN MARKET SOCIETY 3 References Bloch, P. C. (2014). The role of the state in sustainable market society. Burlington: Ash gate Pub