TEKS 113.31(d)(13), Social Studies (Economics)

Subject: Economics – High School
TEKS 113.31(d)(13)

Summary of TEKS 113.31(d)(13)

TEKS 113.31(d)(13) explains the government’s role in the U.S. free enterprise system. Initially, the government played a small role but has expanded its influence to regulate, protect, and support the economy. Its policies aim to achieve goals like growth, stability, and fairness but come with trade-offs.

Key Concepts of TEKS 113.31(d)(13)

1. Role of Government: Acts as a regulator, protector, and supporter of the economy.
2. Changes Over Time: Government involvement grew during events like the Great Depression and modern economic crises.
3. Costs and Benefits of Policies: Policies support economic goals like growth and fairness but require careful balance to manage costs.

Section 1: What Is the Role of Government in the U.S. Free Enterprise System?

TEKS 113.31(d)(13)(A)

Explanation: In the U.S. free enterprise system, the government acts as a regulator, protector, and supporter of the economy. Over time, its role has evolved based on the needs of the country.

Role of Government

1. Regulator:
   • The government enforces laws to ensure fair competition and protect consumers.
   • Example: Antitrust laws prevent monopolies that could harm consumers.
2. Protector:
   • The government safeguards workers, consumers, and the environment.
   • Example: The Occupational Safety and Health Administration (OSHA) enforces workplace safety standards.
3. Supporter:
   • The government provides public goods and services, such as roads, schools, and national defense.
   • Example: The federal government funds infrastructure projects to support economic growth.

How Has the Role of Government Changed Over Time?

• Early Years: The government had minimal involvement in the economy, focusing mainly on property rights and enforcing contracts.
• Great Depression: During the 1930s, the government expanded its role to stabilize the economy, creating programs like Social Security and unemployment insurance.
• Modern Era: The government now regulates industries, provides public services, and responds to economic crises like the 2008 recession and COVID-19 pandemic.

Key Idea: The government’s role in the economy has grown over time to meet new challenges and support the free enterprise system.

Section 2: Costs and Benefits of Government Policies

TEKS 113.31(d)(13)(B)

Explanation: The government creates economic policies, rules, and regulations to achieve specific goals like growth, stability, and fairness. However, these policies come with both costs and benefits.

Economic Goals and Their Impacts

1. Economic Growth:
   • Policies like tax cuts or infrastructure spending stimulate growth.
   • Benefit: Creates jobs and increases wealth.
   • Cost: May increase national debt if spending exceeds revenue.
2. Stability:
   • The government manages inflation and unemployment through monetary and fiscal policies.
   • Benefit: Reduces economic uncertainty.
   • Cost: Overregulation can slow business activity.
3. Full Employment:
   • Programs like job training and unemployment benefits aim to reduce joblessness.
   • Benefit: Ensures more people earn incomes.
   • Cost: High costs to fund programs.
4. Economic Freedom:
   • Policies support entrepreneurship and consumer choice.
   • Benefit: Encourages innovation and competition.
   • Cost: Too much freedom can lead to unethical business practices.
5. Economic Security:
   • Programs like Medicare and Social Security provide safety nets.
   • Benefit: Protects vulnerable populations.
   • Cost: Requires high taxes to fund these programs.
6. Equity:
   • Equal opportunity policies focus on fairness in access, while equal outcome policies aim to reduce income gaps.
   • Benefit: Creates a fairer society.
   • Cost: Equal outcome policies can discourage hard work.
7. Efficiency:
   • Regulations ensure resources are used wisely.
   • Benefit: Prevents waste and promotes sustainability.
   • Cost: Compliance with regulations can be expensive for businesses.

Key Idea: Government policies aim to balance economic goals but must weigh the trade-offs between costs and benefits.

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