Law Homework Help

Please respond to the below post using at least 250 words. For this thread, support your assertions using scholarly and/or Biblical citations in APA format. Each reply must include scholarly and/or Biblical citation in APA format. Any sources cited must have been published within the last five years.

Summarize the role of the government in the budget process

The role of government is important in the budgeting process because the government allocates funds and creates guidelines on how funds are spent. Allocation of funds ensures that there will be resources available to the organization and there will be enough funds to cover those resources. The allocation of funds is important because it covers items that are important to the organization. The role of government in the budgeting process is important because there are checks and balances set in place to ensure the funds set aside for resources and used for those resources and to eliminate overspending, which could lead to serious financial restraints. The value of the government service is collective, for the community, as opposed to the individual value received by purchasers of business services, (Mikesell 2017). Budgeting allows the government to act in the best interest of stakeholders, employees, and taxpayers alike.

Analyze the role of the government in correcting externalities and other market failures

Government correct externalities and other market failure by evaluating and calculating the magnitude of the situation and implementing a system to create taxes on goods and services to achieve a positive outcome. Government imposes taxes on products that contribute to negative externalities and subsidizes the negative externalities with positive subsidies. This process allows the government to provide goods and services that contributes positively to citizens. While private businesses operate in the best interest of the business or individual the role of the government is to protect the interest of citizens. The nature of these goods and services is such that the government cannot capture that value in a voluntary sales transaction. The value of the government service is collective, for the community, as opposed to the individual value received by purchasers of business services, (Mikesell, 2017). Government must regulate certain goods and services to ensure that private businesses are operating within the guidelines and prices remain fair and affordable to citizens. If the government allows businesses and organizations to freely operate without any guidelines, they would be able to produce inferior quality products, while charging citizens higher prices. The market economy needs government to function properly, and governments need the market economy if they are to serve the public interest, (Mikesell, 2017). Government can prevent externalities by taxing goods and services that contribute to spillover costs. The government must first determine if externalities are affecting the public negatively or positively. The government must then determine how resources will be redistributed and how the redistribution will benefit the public.

Justify the use of taxpayer resources to correct externalities and other market failures

Corrective taxes help the government to eliminate externalities because they are more co effective to the public. Subsidization is also a terrific way for government to eliminate spillover costs. If the government does not regulate certain goods or services, this could affect residents because business could make rules and regulations, which could be money driven and could act in the interest of the private company and neglect residents. When spillovers happen, the government can impose taxes to hold suppliers accountable and citizens save money.

Reference

Mikesell, J. (2017). Fiscal Administration (10th Edition). Cengage Learning US. https://mbsdirect.vitalsource.com/books/9781337515580

Key, V. O. (1940). The Lack of a Budgetary Theory. The American Political Science Review, 34(6), 1137–1144. https://doi.org/10.2307/1948194