How and why does the U.S. govt get involved in economic systems?

Question

I need an answer asap because it's my sister's homework and...help because I have little clue about it.

ok, you mentioned the 'why' but left out the 'how'. so... how?

Answer 1

Several reasons why:
- Politicians tend to get re-elected when their constituents are financially happy and voted out when their constituents are hurting financially.
- A successful economy boost corporate profits which results in more tax revenue and more money donated to political fund raisers.
- A successful economy provides national security by being able to maintain the military, etc...
- A successful economy allows us to have influence on other countries in the form of humanitarian aid.
- A successful economy is a prerequisite in being a world super power.
- A successful economy allows international competitiveness.

How does the gov. influence the economy?
- Internally by balancing or not balancing the budget. IE, Clinton used an economic system called PAY-AS-YOU-GO to balance and keep balanced the budget. This resulted in a surplus and we were a prosperous country.

Bush Jr, in 2001 discontinued that system and cut taxes for the rich. This is known as trickle down economics which has proven in the 80s to result in large deficits. We currently have a 27 trillion dollar deficit and have lost superpower pull by owing China much of that.

- Globally, economies can be influenced with the use of sanctions.

Answer 2

Money is a form of power. By controlling the economics of a country, the govt is able to exercise greater control over the country.

Answer 3

It gets involved by putting sanctions on other countries like Iran, Cuba, and North Korea so nobody can trade with them so they cut down their weapons making. What the US doesn't realize is that the weapons-making goes on and the people starve. What the US should do is do unto itself before it does onto others if it wants to make a point.

Answer 4

Money is power