1. Role of Government Chapter 12

2. GROWTH OF GOVERNMENT   The U.S. government employs more people in the U.S. than any other organization.

3.   The growth of government has taken place as a result of 4 key factors:

4. 1. 1.Population growth – a larger population requires more educational facilities, increased road construction and repair, more police protection, and larger national defense forces.

5. 2. 2. Changing public attitudes – during and shortly after the Great Depression people began to recognize the need for government intervention in the economy.

6. 3. 3.Rising standard of living - once people earn enough to meet their basic needs, they then look for ways to fulfill their wants, usually through increased spending – as people spend more and increase their standard of living, they expect goods and services to improve – that sometimes means more government programs (Ex: growth in education, health care)

7. 4. 4. National emergencies – a national emergency such as war or an economic crisis can cause the government to increase in size.

8.   Spending by the federal, state, and local governments in the U.S. in 1950 was about $70 billion   dramatic increases in the number of government programs meant by 2003 total government expenditures had risen to more than $3.5 trillion.

9.   The federal government spends the largest share of this figure ($1.4 trillion) – about ½ of federal expenses go toward paying for insurance benefits (social security, Medicare, retirement, etc.) and interest on debts   other federal expenses include national defense, education, public hospitals, and law enforcement.

10.   State and local governments also spend large sums of money (an average of about $3.3 billion a day or $38,274 a second)   state and local budgets are generally for education, public welfare, road construction, hospitals, police and fire protection, etc.

11.   In the U.S., all governments regulate business through rules and procedures that guide economic activity   government regulation has 3 main purposes:

12. 1. 1.Preventing abuses – Ex: protects workers from discrimination, unhealthy working conditions

13. 2. 2. Protecting consumers – Ex: the Food and Drug Adm. (FDA) protects people from unsafe foods, medicines, and toys.

14. 3. 3. Promoting competition – Ex: prevents the formation of monopolies (complete dominance by 1 company in an industry)

15.   Individuals that do not agree with certain government regulations have an opportunity to change them – How?

16.   By voting

17.   Through political activism

18.   Participating in or supporting an interest group, which is an organization of people who work together to achieve their common goals   interest groups often give money to political candidates or campaigns for them   most interest groups advance their plans through lobbyists (people hired to work for an interest group) – lobbyists can be found in most governmental facilities (Ex: Congress, state legislatures)