Our government has played an increasing role in our economy. Explain three important roles our government plays in our economy.

1. Taxation - our legislators
vote on increases of taxes and repeals of tax cuts. The tax tables help determine for
the individual American how much of their pay is take-home pay. The more the average
American has, the more they spend on businesses large and small, the more
businesses have to pay employees and the more money goes
around.

2. APR - There are
federal rates of interest set by what many refer to as "the Fed". This role is not a
legislative role, but Ben Bernanke is our Federal Reserve Chairman who assumes this role
of determining rates and values. Currently, the Annual Percentage Rates are some of the
lowest ever, so the Fed is making an effort to effect our economy in this way, but
because the legislators have recently voted increased regulations of creditors, this
effort is in vain. The APR is added to a credit card company's interest rate and hurts
the American trying to pay down debt.

3.
TRUST - When the government intervenes with Wall Street or
mortgage lending or creditory rates or the bailouts of major companies it has an ethical
consequence on the American people. Sometimes the Americans buy the move as benefitting
them, other times, they believe the move hurts them. Of late, Americans distrust
government moves and each one can be seen as Wall Street has taken
hits.