What role should government play in an economy?
The politician, Tipp O’Neill once compared the federal government to being big, fat and out of control. In contrast, the actual role of the government should be small, lean and in control, or under control. What this means is that we have limited government - limited government that has defined, enumerated functions, beyond which it should not operate. Author, Commentator and President of The King's College, Dinesh D'Souza |
The government's role in an economy should be restricted to enforcing certain ground rules which facilitate commerce, including, but not limited to, enforcing contracts and protecting private property rights. Economist, investment advisor, author and commentator, Peter Schiff |
Government needs to protect property rights and enforce a strong, transparent legal system, but otherwise should have a limited role in our economy and instead allow the free market to work. Independent Women's Forum director and Goldwater Institute senior fellow, Carrie Lukas |
This is a highly contested issue. Following the lead of the father of modern economics, Adam Smith, contemporary libertarian economists, exemplified by Milton Friedman and his followers, believe that social well-being is maximized by minimizing government involvement in the economy. They say that government involvement should, in effect, be limited to ensuring good government, maintaining law and order, and the defence of free societies. At the other extreme, socialists believe in a strong role for government and government ownership of the means of production and distribution. Under a socialist regime private ownership is restricted to personal belongings and effects. The reality is that the last century has seen the mixed economy prosper with government involvement through legislation and regulation pervading the economy. In recent times, the extent of government ownership of the means of production and distribution in mixed economies has typically diminished although funding of health and welfare services has grown strongly. Professor & Head of QUT's School of Economics and Finance, Tim Robinson |
The government’s role in an economy should be to create an environment in which people feel as though they will be rewarded for, and reap the benefits of, their innovation, by doing things like protecting property rights, enforcing contract rights and ensuring that taxes aren’t prohibitively high. These factors help to spark the entrepreneurial spirit in people because they know that their efforts, if successful, will be rewarded. In societies were these basic rights aren’t protected, there is little spirit. Contributing editor of City Journal and Manhattan Institute senior fellow, Steven Malanga |
Government contributes to a growing economy by creating a consistent legal system that protects property rights and innovation. Also, by fostering a friendly business environment, where one business does not get preferential treatment over another, commercial activity enriches the many instead of the politically-connected few. Vice President of the National Taxpayers Union, Pete Sepp |
I think the primary role is to enforce property rights and contracts. In order to have a meaningful market and property, you have to have clear, enforceable property rights and contracts are necessary to have any kind of market so that's the primary role. In addition, the government should be responsible for trying to minimize the amount of coercive activity in the economy and the amount to which those in any particular outside economy can have a coercive influence here. The latter basically means that you have to have an effective, honest, strict, forward police force, law enforcement and defense establishment. I think you have to limit the power of government because the incentives of the people within the government are very likely to try to expand their role. Members of the government are basically compensated as a function of the size the organization they run, rather than its net returns, so their incentives differ in this way to the private sector. Cato Institute Chairman Emeritus and Senior Economist, William Niskanen |
I would like to see the government play less of a role because when the government gets involved, it creates failures and discourages rather than encourages people to be entrepreneurs because of burdensome regulation and taxation. I think the government tries to be all things to all people and subsequently takes away individual rights under the auspice of uniform rights. The challenge, as individuals, is that we find ourselves working hard for those who choose not to work and yet enjoy the same benefits . So I think government has to be very clear about its responsibility to not create a dependency system and to allow for each individual to really utilize their skills and judgment because what was intended as a safety net has become a disincentive to work. One of the challenges we have today is that we're creating a system where people become more dependent upon the government versus relying upon themselves. Entrepreneur and Chairman of The Frederick Douglass Foundation, Timothy Johnson |
It should prosecute and punish crime, including theft and criminal fraud, and it should provide a judicial system for the resolution of civil disputes. It should provide an army that can defend a country from external attacks. It should provide some safety net for the deserving poor. Editor of FutureOfCapitalism.com and author of "Samuel Adams: A Life", Ira Stoll |
It should set sensible rules of the game, a modest hand – neither heavy nor missing – in taxes, spending and regulation, to assure the private economy can prosper. Professor of Economics at Stanford University, Michael J. Boskin |
To remove obstacles to the free inflow of capital. President of H. C. Wainwright and Company, Economics, David Ranson |
To protect people from real danger and harm, and practices that are deliberately discriminating. |