Veronica Mendivil
Sally
Economics
May 1, 2013
Economics
What is government’s role in a market economy?
The definition of market economy is an economy that operates by voluntary exchange in a free market that is not controlled or planned by a central authority; capitalist economy. So what is the role of the government when it comes to free market? Easy business is business so the government is to keep the economy going and complete the functioning of world business.
Wait a minute it’s a “free marketing” theres no authorities so how can the government make sure it’s flowing? The government placed laws and policies that guarantee rights of individuals properties and still be respected and secured. Neither should the government be the ultimate competitor against the private sector, markets become unfair which loses to economic progress and development. It’s a necessity that the government confirms the stability of security and policy in the economy where freedom, fairness and dignity is played along.
Since this is “free marketing” realize that business people have to be in a location where they sometimes interfere political climate and he you have a situation where the whole operation could be jeopardize of private investments. So now this has created an anemic economy other words ill economy.
Places such as Haitian atives should come up with a plan that can attract attention to investors to come over and help them with their needs. This article quotes, “Money is just as important to the economy as blood is to the human body. No economy can survive without money circulating.”
To conclude this mind boggling confusion basically the governments job is to make sure that democratic and institutional structures still apply to a stable political environment and strong economy. We’ll know that when we start seeing investments and will be able to keep the ones that are in the economy already. This situation is all paramount. Thank you for taking the time to read this hope it gives you somewhat a short summary of the governments role in the “free market economy.”
Work cited:
Sources:
- "Ekspoze! -The Final Word." Ekspoze The Final Word. N.p., n.d. Web. 01 May 2013.
- "Market Economy." Wikipedia. Wikimedia Foundation, 05 Jan. 2013. Web. 01 May 2013.
- "What Is the Rationale for Government Involvement in the Market Economy?"WikiAnswers. Answers, n.d. Web. 01 May 2013.
- "Government Involvement in the American Economy." About.com Economics. N.p., n.d. Web. 01 May 2013.
- "Government and the Market Economy | Everyday Citizen." Government and the Market Economy | Everyday Citizen. N.p., n.d. Web. 01 May 2013.
- "Government and the Market Economy | Everyday Citizen." Government and the Market Economy | Everyday Citizen. N.p., n.d. Web. 01 May 2013.