In the modern American society, one confronts a political economy in which a decision in one area affects another. This political economy could be called a mixed economy because it is a blend of private and public enterprises, individual initiative and government promotion, personal responsibility and public regulation, federal and state governments. Government maintains an orderly legal and economic system, thus helping business. By protecting private property and enforcing contracts, it helps businessmen to operate in a stable situation where agreements can be enforced. By promoting a prosperous economy, the government enables businessmen to enjoy a large volume of sales and good profits. Indeed the national government supplies a number of specific services and helps individual sectors of business, through its economic policy.

Index

15.0 - Introduction
15.1 The Goals of Economic Policy
15.2 Theories of Economic Policy
15.3 The Federal Budget
15.4 Taxation and Spending
15.5 International Economic Policy

Chapter 16