2007-03-09 01:47:09 · 8 answers · asked by Anonymous in Politics & Government ➔ Government
The Government can give tax breaks to get companies to do what they want. They can regulate industries or relax regulation on industries. They print the money. They can dole out contracts. They make all of the laws that impact business and consumers. They have a very big impact.
2007-03-09 02:04:45 · answer #1 · answered by Vernon 3 · 1⤊ 0⤋
The government is like a huge sponge sucking the life out of the economy. As long as it only takes enough to take care of the essentials, then the economy can prosper because private enterprise adds value to their efforts. Money going to the government is just lost from the system.
Imagine a country where everyone was a government employee or otherwise supported by the government. Where would the money for the economy come from? There would be no money to tax. The government has a huge involvement.
2007-03-09 02:38:18 · answer #2 · answered by GABY 7 · 0⤊ 0⤋
The Government does a couple things that really involve the economy. One they print money with out any gold backing it now, they spend money they do not have, which is why they need to print more. They over pay themselves to make sure they get to spend more money.
2007-03-12 22:46:34 · answer #3 · answered by allen w 7 · 0⤊ 0⤋
The government controls most part of the economy. They control how much money is in circulation in the U.S. They also control a lot of things such as Gas Prices too.
2007-03-09 01:51:18 · answer #4 · answered by I'm 1 up on you!! 4 · 0⤊ 0⤋
Government get financed by big business, big business pulls the strings of the government - hence big business=government=our economy.
If rich execs want to get richer, they raise the price of gasoline, and our govt blames it on the war/economy.
2007-03-09 01:50:33 · answer #5 · answered by INDUSTRYkurt 3 · 0⤊ 0⤋
The fed can set interest rates, that's about all they can do. They can also break up companies that violate anti-trust laws, or subsidize industries of their choice. The rest of the economy takes care of itself.
2007-03-09 01:49:48 · answer #6 · answered by Pfo 7 · 0⤊ 0⤋
Do you want to narrow that down some?
They set the intrest rates at which banks can borrow money to loan to you, they are the largest consumer of products in the world, the list goes on forever.
2007-03-09 01:49:51 · answer #7 · answered by Steve H 5 · 0⤊ 0⤋
to give a good atmosphere for companies to invest
that will created more jobs for his voters
so that the state can continue collecting good tax
if you still wants to see the negative of it, look in Indonesia
2007-03-09 02:17:07 · answer #8 · answered by kimht 6 · 0⤊ 0⤋