Role of Government in the Survival of Private Market

Topics: Externality, Pollution, Market failure Pages: 2 (492 words) Published: February 27, 2013
The Role of Government
Without the role of government, I do not think the private market would be able to control the negative externalities that come from production of goods and services, the prices of goods and services to keep our nation moving forward, the control of pollution to our environment, transportation and security of our nation under control and safe. I understand that the private market would do a good job on figuring out the needs and wants of the buyers and sellers, but eventually I believe that greed of power and money would take over and the care of our common resources would end up becoming a first come first serve and the air we cherish would be last on the agenda due to greed of power and wealth. We “all” need government in our lives to an extent to move forward in the future so that there is order, without our natural resources being depleted and to prevent a revolution from happening. The reason why government should always have some kind of a role in the management of the private market is because our country needs stability and growth for the future. If the government was not around or was very limited on creating or imposing taxes, regulations and subsidies on producers of goods and services, along with the consumers of all goods and services, there would too many negative externalities that would come from producers and consumers. Our public goods that we all cherish would be at stake, our common resources would become an event that would lead to tragedy, and any kind of positive externalities being offered to the public would vanish unless you were wealthy or tied to some kind of powerful group or family. As for some examples of negative externalities that would come from producers and consumers without the role of government, our common resources (as in the air we breathe) would become so polluted which in trade would cause more health issues, raise the cost of health care, and destroy most of our natural resources (forest,...
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