1. GOVERNMENT INVOLVEMENT IN THE ECONOMY

2. AMERICAN VALUES AND IDEAS The framers of the Constitution envision a country with a market economy. Why because it shares some of the basic values America stands for: Freedom to own property, to make a profit and to make choices on what to own, produce, buy or sell. The Government’s involvement then started by coining money, collecting taxes and providing a foundation for a market economy. (Congress had power)

3. Problems After a while the government realized it needed to be involved a little more to protect our freedoms. Here are some the problems that came about: working conditions were unsafe, not all Americans have economic security, the economy is unstable, unsafe products harmed people, businesses made profits unfairly, the environment was damaged, etc.

4. Government Methods Governments regulate businesses – laws and enforcement Governments pay individuals – assistance with food, shelter and medical care Governments own resources – national forests, hydroelectric dams Governments help pay for economic activities- loans to farmers, airlines, insurance companies

5. Government Methods Governments control spending – taxes and spending Governments make tax rules – changing of tax rates to reward/punish