Government is the group of people in a country who are responsible for making laws and taking care of citizens. Over the years, governments have changed their roles a lot. In the past, they were in charge of both things, but now they often do one or the other. Governments are also in charge of managing externalities, social inequality and market failures. They are also in charge of setting taxes, providing security and maintaining public infrastructure.
Some people think that governments should do more to take care of their citizens than just making laws. They say that a government should provide healthcare, education and housing for its citizens. These programs can be expensive, so a government might need to raise taxes to pay for them. Governments can also use their resources to help the private sector grow. For example, a government might give money to a business that can’t afford to hire employees on its own. This is called a public subsidy.
A government can also spend money to protect its citizens from natural disasters or other threats. It can do this by putting in place a police force, a court system that treats all citizens fairly and a military to defend the nation from attack.
Another role that a government can play is ensuring there is a level playing field for all the different businesses in a country. This is especially important in a capitalist society where there are many competing companies that are trying to make as much money as possible. Governments can do this by regulating the economy and setting tax rates. They can also regulate the environment by setting standards for pollution, overfishing and other issues that might harm humans or other animals.
Like everyone else, a government sometimes spends more than it makes. If cash revenues from taxes and fees are not enough, a government body can borrow money. This can be done by selling securities, such as bonds, to the public. A bond is an IOU that a government writes to a buyer. The government promises to repay the buyer at a later date with both the original loan amount and interest.
One of the most controversial roles that a government can play is providing social programs for its citizens. This can include welfare benefits, medical insurance and food stamps. Some people believe that it is the government’s moral obligation to do this while others argue that it is expensive and destroys a person’s sense of responsibility for his own well being.
Most countries that have a democracy have some sort of government system where the people have power over their leaders through elections and other mechanisms. The most common types of governments are democracies, totalitarian regimes and authoritarian regimes, but there are also some hybrid systems. Regardless of the type of government, there are some basic principles that all governments should follow. These principles include mutual toleration, the idea that you should accept your political opponents as legitimate even if you disagree with them vehemently.