The Basics of Government
The government is the institution by which a country exercises power over its people and imposes order and law. It has the ability to tax and compel citizens to contribute to its welfare programs, which can include unemployment benefits, national health insurance, education, and food subsidies for the poor. Governments also manage natural resources and provide infrastructure like roads, bridges, and waterways. It can also promote research and development, invest in agriculture, forestry, and the environment; maintain embassies and consulates abroad; and enforce laws to protect property rights and promote justice.
Governments first evolved as people discovered that protecting themselves from others was easier if they formed groups, with one member being designated as the leader. This recognition of the need for protection became what is today called sovereignty, or the right of a group (later a nation) to govern itself without interference from outside forces.
At the local, state, and federal levels, people elect representatives to city councils, state legislatures, and Congress to make laws governing their jurisdictions. They also pass measures to raise money by taxing people on their incomes and purchases, and draft budgets to determine how that revenue will be spent on public goods and services. This includes funding for schools, police and fire departments, and mail services. It also includes defense spending, infrastructure investments, and the salaries of government workers.
A common debate centers on the role of governments in providing social programs to its citizens. While some criticize the expense of these ventures, it is often pointed out that a private business could not provide such programs in large enough amounts or at low enough cost to meet everyone’s needs. This is particularly true of national defense and education.
In addition, the government can regulate access to natural resources such as land and wildlife. It can also ensure that the public receives a basic level of security by establishing a military and maintaining a network of law enforcement agencies.
There are two types of government expenditures: mandatory and discretionary. Mandatory spending accounts for nearly two-thirds of the government’s annual budget, and does not require a vote by Congress in the appropriations process each year. Discretionary spending accounts for the remainder of the annual budget, and may be approved through a vote in the appropriations process each year or by executive action. This includes funding for national defense, education, housing, and welfare programs.
Businesses are regulated by the government through taxes, which are imposed on them based on their entity (sole proprietorship or limited liability company), industry, size, and location. The government also regulates businesses by creating standards they must follow when doing business with consumers. It can also impose fines or other punishments on companies that do not comply with these standards. These penalties are designed to discourage unethical or illegal behavior and protect consumer safety. These regulations help keep the economy operating smoothly by ensuring that businesses follow rules set forth by the government.