Government and the Economy How and why does the government act in the economy?
How does the government act in the economy? • Take about three minutes and try to write down all the things you know the federal government does. • Any Economic activity they create, oversee, manage or encourage. • Whether you agree or disagree with it does not matter. Just write it down and be ready to discuss it.
Why does the government act in the Economy? 1. The Constitution Mandates it. 2. Other laws mandate it. 3. We have decided that Government activity in the Economy can cause economic growth and/or reduce economic swings. 4. We expect it. We have decided that living under the government is easier and more profitable than living without it (or else we’d do away with it, right?).
How is it mandated? Preamble: We the People of the United States, in Order to form a more perfect Union, Establish Justice insure domestic Tranquility provide for the common defense promote the general Welfare And secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
How is it Mandated? Constitution Article II Section 7 Revenue Bills, Legislative Process, Presidential Veto All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
Constitution Article II Section 8-not all things listed—just a sample Section 8 - Powers of Congress The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the US but all Duties, Imposts and Excises shall be uniform throughout the United States; Borrow money on the credit of the United States; To regulate Commerce with foreign Nations… among the … States, and with the Indian Tribes; To establish ….Laws on the subject of Bankruptcies throughout the United States; To coin Money, regulate the Value thereof, and of foreign Coin fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States; To establish Post Offices and Post Roads; To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
Sherman Antitrust Act of 1890 Sec. 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.
How does the Government Act? Creation of Law Enforcement of Law Oversight and Interpretation of legal questions Collection of Taxes and Raising of Revenue to do these things.
So what shouldn’t the government be doing? Look at your original list and cross off what you are thinking the government shouldn’t do. Discussion—(4 corners).
Exit Ticket Criticize or Defend the current U.S. government economic involvement in the Economy. Explain why based on what we talked about and looked at in class today. (1-3 paragraphs)