Question

Can you explain.

Responsibilities of government in the market place and social welfare of the people.

Answer 1

Irrespective of types more or less all governments interfere in the market. Its the basic responsibility of the government to ensure the market functions smoothly. When the market fails in situations like negative externalities government interventions take place to bring efficiency in the market. Its the responsibility of the government to ensure basic infrastructural facilities like road, bridges, communication facilities, food security, heal care facilities and many more which are otherwise cannot be simply decided by the demand and supply forces of the market. It's also the responsibility of the government to ensure the purpose of development is being solved by ensuring all positive is happening at least to poverty, inequality, and unemployment. In addition to these, there are other important economic functions of the state to go for national defense, protection of public and private properties and macroeconomic management to bring economic stability and growth for the nation. Apart from the economic functions, there is a greater role of the state to ensure the welfare of its citizens through social justice and dignity of living, equality of opportunity, eradication of poverty, minimizing inequality, maximizing employment, ensuring the health and just society, investment on development issues like health, education, sanitation, social justice and many more.