Question

The role and size of government is one of the most hotly-debated topics in the United States today. What should the role of government be in our market economy?

Answer 1

In a market economy like USA , government has very limited role to play . In a market economy the forces of supply and demand play the central role in determining market prices and equilibrium of various goods and services . This is also called invisible hands governing the economy without government intervention . But we cannot do without the government totally .

Government play the role of overseeing the economy . Public goods which are not provided by private firms such as national highways , brides etc are produced by government . Government looks after the welfare of the economy and provide various social services such as free healthcare to the poor etc . Government also has the role of maintaining economic balance and look after economic development .