3 Players in the U.S. Economy

• Consumers

• Producers

• Government

Role of Government

Functions

• Shell..……205,742,000 barrels      Chevron….144,332,000 barrels      Exxon/Mobil......130,082,000barrelsMarathon………..117,740,000barrelsAmoco........…….62,231,000 barrelsAnd CITGO  oil is imported from Venezuela by Dictator Hugo  Chavez who hates America and openly avows our  economic destruction!  (We pay  Chavez's regime nearly $10 Billion per year in  oil  revenues!)       

• Sunoco• Conoco• BP /  Phillips 

• Hess• Flying  J• Murphy Oil USA

Providing Public Goods

• People can use public goods without reducing the benefit to other people.

• Examples: street lights, museums, parks, military (National Defense)

Redistribute Income

• Typically, the aged, sick, and the poor.• Social Insurance Programs

– Examples: social security, workmans’ comp, unemployment insurance, medicare.

• Public Assistance Programs– Welfare, WIC, Medicaid, Supplemental

Security .

Regulating Economic Activities

• Protecting Consumers– FDA, USDA, DOT, Credit Laws, etc

• Promoting Competition– monopolies

• Regulating Externalities– Pollution, clear-cutting

• Supervising Labor and Management– Unions

Ensuring Economic Stability

• Unemployment

• Inflation - increase of prices