1. Role of Government in the United States SSEF5 The student will describe the roles of government in a market economy. a. Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures. b. Give examples of government regulation and deregulation and their effects on consumers and producers.

2. The Role of Government # 11 Copy the Chart below into your notebook. Fill in the details using your book. Page 50 - 51 Protecting Private Property Rights Promoting competition Providing Public Goods/Services Resolving Market Failures Redistributing Income Regulation and Deregulation

3. Stossel in the Classroom What is the difference between Private and Public goods?

4. Protecting Private Property Rights  Protects private property and intellectual property through laws, contracts, patents, and copyrights  Key component of a market economy that is based on private ownership and voluntary exchange  Disputes settled by judicial system

5. Provides Public Goods and Services  The benefits of public goods are shared by everyone in a society.  The government pays for public goods by collecting taxes  There is no incentive for private companies to provide public goods  Examples: roads, schools, national defense, police/fire dept., parks

6. Redistributing Income  Taxes pay for transfer payments – supplement those who have lower incomes or cannot work  Those who earn more are taxed more  Gov’t maintains a min. standard of living for citizens  Examples – welfare, food stamps, Social Security, disability, unemployment, WIC, Medicaid

7. Promoting Competition  Market economy depends on free competition to keep prices low and quality high  Prevents monopolies and trusts  Example – AT&T

8. Resolving Market Failure  Occurs when a private company benefits from production for which other people end up paying some of the costs  Unintended consequences  Pollution, BP/Gulf of Mexico Spill  Regulations result from resolving market failures http://media.foxbusiness.com/050412/050312_Stossel_H ouck_FBN_MED.mp4 http://media.foxbusiness.com/050412/050312_Stossel_H ouck_FBN_MED.mp4

9. Regulation and Deregulation  Using laws to control business activity  Intended to benefit the public (protect consumers)  Examples – breaking up monopolies, fining polluters, taxes on alcohol and tobacco, safety regulations http://media.foxbusiness.com/102414/102 414_stossel_dudley1_FBN_MED.mp4 http://media.foxbusiness.com/102414/102 414_stossel_dudley1_FBN_MED.mp4 http://media.foxbusiness.com/102414/102 414_stossel_dudley1_FBN_MED.mp4

10. Activity  Students you will enter into a group to perform the activity.  Once everyone is in a group, one person will draw a role of government from Ms. Lide’s bucket.  Students you will draw your role of government onto a piece of paper.  Once completed wait for further instructions.

11. Writing Assignment ½ - 3/4 of a page Write a story or a narrative about what life in the United States would be like if there was no intervention or involvement from the government in the economy. Think about what kinds of things we might not have or how businesses might operate without government involvement or regulations. Be creative!