What Function does the Government Serve in the Private Sector?


The government establishes social order. The executive, the legislative, and the judiciary make up the administration in most cases. Each arm of government has a specific duty to maintain checks and balances and aid in law enforcement. The dictatorship owes it to its citizens to protect their security and comfort. Despite the administration’s critical role in a country’s economic growth, the private sector’s activities may suffer as a result of its actions.

Management of the Economy

Governments in the modern era control and foster favorable conditions for economic expansion. However, not every administration performs this duty well. To ensure the peaceful coexistence of those who participate in economic growth, economic policies are defined by the private sector in the United States and implemented by the government. Consumer protection, the implementation of health and safety regulations, and the structuring of labor contracts to promote justice and efficiency are additional requirements of free markets in addition to government involvement and regulation (Mitchell, 2005). As a result, unorthodox strategies and flawed market models may lead to unfair competition in uncontrolled marketplaces.

Redistributing Resources and Income

The equitable distribution of the taxed riches is the duty of the state. The goal can be reached by taxation, which would then be utilized to pay for societal infrastructure and public services. Tax revenue is redistributed by providing services to vulnerable populations like the impoverished, the elderly, and people with physical and mental disabilities. Governments in nations with strong economies also offer affordable housing, pensions, and health care (Mitchell, 2005). Clearly, the government directly affects the redistribution of wealth through taxation and the delivery of improved services to the less fortunate sections of society.

Public (Collective) Goods Provision

Public goods are services that the government provides. The private sector might not have the drive to provide public goods since it focuses on making money…

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