GOVERNMENT IN OUR ECONOMY Tuyen Pham 3 rd period PBMF

Federal, State, Local Government  The Federal Government oversees the activities that involve two or more states. (foreign/interstate commerce)  Trucking companies  State government regulates intrastate commerce, business within the state  Local governments, which include county boards and city councils, provide services needed for the society.  Police and fire protection

State Representatives  State level, Senators:  Kay Bailey Hutchison (R)  John Cornyn (R)

Local Representatives  Local Level, House of Representatives:  Pete Olson (R) (District 22)  Al Green (D) (District 9)

Government Protects  Government protects our rights in many ways.  Policies on safe work environments  Police and firefighter services, Protection from discrimination  Air, water, noise, and chemical pollution prevention  Government mandates contracts, agreements on an exchange of goods/services for money, which help consumers and producers by providing accountability.  Intellectual property rights protects ideas and inventions solely on the person who has them.  Patents: exclusive rights to make, use, or sell item for 17 years  Copyright: protects work of authors, etc. for 50 yrs after death  Trademark: logos, mottos, or symbols protected for companies

Government Regulates  Although the U.S. has a laissez-faire economy, the government still regulates some things to provide stability.  Govt. regulates public utilities, organizations that supply services/products vital to people, by approving certain price caps, etc.  Telephone service, water, electricity companies  Govt. regulates to provide fair competition within businesses.  Preventing monopolies, companies that have total control of the market  Providing antitrust laws prevent monopolies and prevent unfair practices such as false advertising, misleading prices

Government Assists Businesses  Government helps businesses by providing them important information in the form of data and statistics.  Info over incomes, prices, etc. the Bureau of Labor Statistics, Dept. of Commerce, Dept. of Agriculture  Government loans help businesses get started initially.  Small Business Administration helps businesses get loans. Farmers may also get help/subsidies during times of floods or droughts.

Government Purchases Products/Services  Government spends a vast amt. of money on products and services, purchase 20% of all goods/services produced in the U.S.  File cabinets, military jet aircrafts, automobiles  Roads, schools, national defense, police/fire protection

Government Hires Workers  Government is the largest employer in our economy. One out of every nine workers is a public employee.  Police officers, fire fighters, sanitation workers  Administrative businesses, lawyers, teachers, data analysts

Government Raises Money  Government income, revenue, is essential to fund operations and pay workers. It acquires revenue through taxes and borrowing.  Fines on traffic violations and fees on licenses  The Government employs many types of taxes to raise revenue.  Income taxes are levied based on the income of the individuals. Corporate taxes are also charged  Property taxes are based on the value of land. The profits of these taxes are used to fund schools and other services.

Govt. Raises Money (Cont.)  Taxes on certain items at the stores are called a sales taxes. It is a state/local tax on goods/services collected by the seller. It is based on a percentage of the value of the item.  Government can borrow money by issuing bonds. When a citizen buys a govt. bond, they help finance govt. services. Banks and big financial institution buy bonds. The govt. is then in debt to them and must pay them back interest with “full faith and credit.”  Bonds are less risky than loans and stocks.