GOVT.14c - Government's Role in the Economy

The student will apply social science skills to understand economic systems by 

c) evaluating the impact of the government’s role in the economy on individual economic freedoms.

Maintaining freedom of choice in the marketplace is the basis of the free-enterprise system. Government plays a limited but important role in the protection of individual economic freedoms. 

Individuals have the right to the basic economic freedoms enjoyed in a free market society. The government is responsible for protecting these freedoms. 

The degree of economic freedom in a nation tends to be directly related to the degree of political freedom its citizens enjoy. 

Democratic nations 

 High degree of economic freedom 

 High degree of political freedom Authoritarian nations 

 Limited economic freedom 

 Limited political freedom 

Economic freedoms of individuals can include 

 ability to earn money 

 right to purchase property 

 right to spend incomes on goods and services 

 right to choose occupations or change jobs 

 right to make choices about where and how much to save 

 right to start new businesses and decide what to produce. 

The government has created certain institutions and consumer-protection laws and agencies to protect these freedoms, including the following: 

 Consumer Product Safety Commission 

 Fair Labor Standards Act 

 Occupational Safety and Health Administration 

 Food and Drug Administration