The Role of Government in the Economy

I. Vocabulary. Read and learn the following words:

To coordinate — координировать

To characterise — характеризовать

Private ownership — частная собственность, право на частную собственность

Relative – относительный

Involvement – вовлеченность

Intervention — вмешательство (в экономику)

To ensure - гарантировать, обеспечивать

Economic opportunities — экономические возможности

Fair — справедливый

Dampen - сдерживать, замедлять

Inflation — инфляция

Stimulate - стимулировать

Growth - рост

Federal - федеральный

To tax - облагать налогом

Regulate — регулировать

Agency - ведомство

II. Reading. Read and translate the following text:

In every economy the work of different firms has to be coordinated. In a market economy this coordination is achieved by means of markets. Nevertheless the debate over the role for Government in a market economy is continuing and the issue is being widely discussed at the present time. An economy based on free enterprise is generally characterised by private ownership and initiative, with a relative absence of government involvement. However, government intervention has been found necessary from time to time to ensure that economic opportunities are fair, to dampen inflation and to stimulate growth.

Government plays a big role in the American free enterprise system. Federal, state and local governments tax, regulate, and support business.

In the United States there are agencies to regulate safety, health, environment, transport, communications, trade, labour relations, and finances. Regulation ensures that business serves the best interests of the people as a whole.

Some industries — nuclear power, for instance — have been regulated more closely over the last few years than ever before. In others the trend has been towards deregulation or reduction of administrative burden on the economy.

The U.S. economy has a tradition of government intervention for specific economic purposes — including controlling inflation, limiting monopoly, protecting the consumer, providing for the poor. The government also affects the economy by controlling the money supply and the use of credit. The aim is a balanced budget.