~What factors influence the growth of government? ~Why have government expenditures increased over time?

Factors Encouraging Growth Factors Encouraging Growth Population Growth Population Growth Increases people= (I) needs of a society Increases people= (I) needs of a society Changes in Public Attitudes Changes in Public Attitudes The increased need of government help The increased need of government help Rising Standard of Living Rising Standard of Living Need for improved goods and services Need for improved goods and services More education More education

Factors Encouraging Growth Factors Encouraging Growth National Emergencies National Emergencies In times of emergencies there is a need for government assistance In times of emergencies there is a need for government assistance

Growth in Government Spending Growth in Government Spending Has increased through-out the years Has increased through-out the years Local and State Spending Local and State Spending Education, Roads, Maintenance Education, Roads, Maintenance Largest spender Largest spender Federal Spending Federal Spending Defense, public hospitals, education, housing, and community Defense, public hospitals, education, housing, and community

Review Why has the US government grown in size? Why has the US government grown in size? Why has US government spending increased over the years? Why has US government spending increased over the years? What are the main expenditures of the federal budgets? State Budgets? Local budgets? What are the main expenditures of the federal budgets? State Budgets? Local budgets?

Why does the government regulate business? Why does the government regulate business? How does the government work to provide public goods? How does the government work to provide public goods?

Regulating Business Regulating Business Preventing Abuses Preventing Abuses Prevent business from taking advantage of workers Prevent business from taking advantage of workers Sets working conditions Sets working conditions OSHA OSHA Protecting Consumers Protecting Consumers Investors, prices, savers, borrowers Investors, prices, savers, borrowers Limiting Negative Externalities Another way for government to protect works Minimize the negative side-effects of some economic activity Promoting Competition Help economic growth

Providing Public Goods Providing Public Goods By providing public good the Government helps spark economic growth By providing public good the Government helps spark economic growth Protects citizens Protects citizens Regulates society Regulates society Shared Responsibility Shared Responsibility Level of Government Level of Government Federal, State, and Federal, State, and Privatization Privatization Sale of government property or the handling of government services by Private Businesses Sale of government property or the handling of government services by Private Businesses

Promoting Economic Well-Being Promoting Economic Well-Being Improving the Standard of Living Improving the Standard of Living Diet, production consumption, medical Care, and education (Government shows Highest concerns) Diet, production consumption, medical Care, and education (Government shows Highest concerns) Redistributing Income Redistributing Income Reduce the Income Distribution Gap Reduce the Income Distribution Gap Transfer payment- government provides aid for people who need assistances Transfer payment- government provides aid for people who need assistances

Stabilizing the Economy Stabilizing the Economy A Stable economy makes promotes economic Growth and less of a chance for market failures A Stable economy makes promotes economic Growth and less of a chance for market failures Responding to market Failures Responding to market Failures

Review List government’s purposes in regulating business. List government’s purposes in regulating business. Why does the government provide public goods. Why does the government provide public goods. Explain how the government works to promote people’ s economic well being. Explain how the government works to promote people’ s economic well being. How does the government work to stabilize the economy? How does the government work to stabilize the economy?