24 3.1 – WHEN SHOULD GOVERNMENT ACT?
- WHEN SHOULD GOVERNMENT ACT?
Governments wield the power to influence the actions of individuals, groups, and private sector organizations, as well as the power to punish those who do not follow the established laws of the land. While this may appear to be an overwhelmingly oppressive view of government, it is not necessarily as alarming as it may first appear. Governments in liberal democracies (like the U.S.) primarily exist to serve the public by providing services that cannot or would not be provided by the market. The market describes a social system in which individuals pursue their own self-interest by exchanging goods and services with others in a way that is mutually beneficial (Stone, 2002). We will explore the relationship between the market and public policy in the following sections.
