Chapter 16.1, Problem 4R

To determine

To evaluate: the true size of the government.

Explanation of Solution

Some of the most important and ongoing controversies in American politics is the size and role of government. Economics can be used to assess the relative benefits of government interference in the economy in particular fields, but it cannot address the question of whether government action in general is "too much" or "too little"

There are several different ways to quantify the Government's size, making it impossible to determine its economic impact. Tax expenditures, offsetting receipts and collections and corporate bodies are all excluded from the budget are partially responsible for the budgeting conventions. Yet certain governmental functions, including legislation, obviously can’t be robustly quantified.State size has risen dramatically after the 2008 financial crisis as a consequence of unplanned interference by the government on the money system and resulting stimulus legislation. Most of government spending increase is temporary and can be undone, when finances return to normalcy. So it becomes difficult to truly determine the size of the government.

Economics Concept Introduction

Introduction: Modern governance is not one easy thing. This involves several departments, organizations and programs, and several different players’ senators, officials, judges and even regular employees. Both roles are often different and often also for cross-purposes. Because government is complex, no single measure is enough to capture the real "size" of government.