Role of Government in a Market Economy

Now that you have learned that the government plays a role in providing goods and services in a market economy, you are ready to decide if the state governments should also be providing goods and services and if these services should be paid for by state taxes.

Many people have begun to complain that state governments have become too large. They complain that state governments are trying to do too many things for too many people. They wonder if state governments have gone beyond their Constitutional limits and are now providing services that the framers of the Constitution never intended. They claim that one result of this expansion of state government is a drastic increase in taxes to pay for these services.

You have been selected to serve on a state committee to review the state constitution and make recommendations as to whether state governments should play a less active role in the state and local economy. Your task is to determine what economic powers the state government should have.

In preparation for your first meeting of the state committee, prepare an outline of pertinent information. In your outline, be sure to include:

Include a graphic organizer to illustrate your response. Present your outline to the class as a persuasive reasoning activity.