1. GOVERNMENT SPENDING

2. GOVERNMENT RUN The government promised to take care of certain things so the private sector didn’t have to deal with them. Government run activities are considered too big(or important) for individuals to run themselves. They provide for everyone at the same time. Things such as Interstate highways, postal office, and national defense.

3. HOW DO THEY PAY FOR IT? Fees (national parks, toll booths, etc.) Borrowed funds TAXES The 16 th Amendment allows government to tax individuals and businesses on their income

7. TAXES Government can do three things to change economic activity Borrow Money When the government borrows more money, there is less money for the people to borrow from the banks. When the government borrows less money, there is more for the people to borrow from the banks. Spend Money When the government spends more money, demand increases. When the government spends less money, demand decreases.

8. TAXES continued. Tax the people When the government taxes people, there is less money in the people’s pockets to spend where they want, but government spending goes up When the government taxes less, there is more money for the people to spend where they want, but government spending goes down.

9. Consumer Rights Government agencies exist to protect the consumer as well as public health and safety. EPA, USDA, FDA, and OSHA.

10. Consumer Rights Businesses are held to any contracts that they signed with consumers. Individuals have the right to private ownership and any contracts signed with businesses are enforced by the government. If someone breaks a contract, you can sue.