What Role Should the Government play in economic life Essay

What Role Should the Government play in economic life - Essay modellingent centuries, such as Karl Marx, have questioned the right of private property, and have called for an active part in domineering the generation and distribution of wealth. The marketplace and the government meet head-on in the division of authority in the creation and distribution of goods, services, and wealth. All economists, except the most conservative capitalists, believe that the government has some part in constructing and guiding the economy. The intent of the government in economics is to assure that the economy of the country is commensurate to express its purification and societal will.Taxation is one of the primary policy functions that a government terminate use to stimulate or discourage economic activity. Indeed, governments require taxation to provide the necessary bread and butter for needed projects. Ideally, it is hoped that taxation would be fair and all citizens would bear an equal t ax burden establish on their abilities and needs. However, capitalism has been able to develop concentrated wealth and this unbridled economic freedom has the speculation to create the perception of a shortage of resources. The sixteenth and seventeenth centuries were characterized by food riots as labor increased the supply, markets agitated a sense of shortage, and the threat of unfair taxes interjected a sense fear into the system. The governments role in economics is to assure the fair implementation of tax laws and eradicate the fear of taxes. According to Rothschild, mercantilism will flourish only in a state with a regular administration of nicety (14). The governments role in taxation is to sustain a high degree of confidence in the applications programme of the existing tax laws.The governments role in economics, in regards to taxes, is the generation of confidence in justice and not directing society through tax encouragements. Governments often assume the role of dire cting a societys culture through a series of punitive taxes or rewarding credits. Taxes are often levied against a product,