Medicare

According to Malone (2001), the United States is considered as the command process influences having a mixed economy based on the level of spending by federal, state, and local governments, one fifth of the goods and services produced in the United States. The command process does not necessarily mean that a government literally orders production of certain amounts of oil, or other goods or services rather a government may use the material incentives of the market process to allocate resources in certain ways.

The government is able to control the monopolies, which are played by the large corporations such as Microsoft. The Microsoft Corporation is a good example. The owner of Microsoft, Bill Gates have enough money to pay off the United States debt and control eighty percent of the computer software business. Gates controls the prices of the computer software by supply and demand of the buyers. This gives society the sense that Bill Gates can increase the price whenever he wants to make extra money and currently Bill Gates is capable of doing just that because there is a huge demand for Microsoft software. The government intervenes for the public’s good by trying to break the company into smaller companies so that Microsoft cannot have that monopoly. Eventually the government will put an end to the monopoly of this company. In a government controlled economy the government acts as a coach in which every one would be treated equally. The above example illustrates that it is important to have the government involved to make sure the public and the corporation is being treated equally and not taken advantage of.

The purpose of the government in regards to the economy is to perform many different functions and management of the economy. One of the main economic functions of the government is reallocation of resources and redistribution of income.

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