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→Key Idea #1 Role of Government
==Key Idea #1 Role of Government==
==Key Idea #1 Role of Government==
A couple of hundred years ago, it was believed that the Government should not enter into economic activities and only focus on core functions such as security (law and order, defence). This is termed [http://en.wikipedia.org/wiki/Laissez-faire 'Laissez Faire'] (least interference) and was promoted by 'classical economists' such as [http://en.wikipedia.org/wiki/Adam_smith Adam Smith], the 'father' of modern economics.
===Learning objectives===
However, the experiences of the [http://en.wikipedia.org/wiki/Great_depression great depression] of the 1930's as well as World War 1 and 2 convinced most that Government has an important role in the economic activities.
[http://en.wikipedia.org/wiki/Keynes John Maynard Keynes], was an influential economist, who [http://en.wikipedia.org/wiki/Keynesian_economics argued that Government had an important role in the economy], to stimulate economic growth, income and employment and counter business cycles. It is often said that 'http://en.wikipedia.org/wiki/We_are_all_Keynesians_now "We are all Keynesians now"], since most people support some kind of a role for Government in economic activities. The role of Government covers many aspects such as
#Providing for public goods like law and order, defence, education, health, transport
#Re-distributing national income through fiscal measures such as taxation
#Promoting social justice and equity
#Creating and maintaining core economic infrastructure
#Countering business cycles (inflation and depression), through monetary and fiscal measures
#Regulating the private sector's economic activities, this includes both enabling/encouraging certain activities and discouraging others
===Learning objectives===
#Understand the role that Governments play in the economy of a country
#Understand the need for Governments to play such a role
#Be aware of the areas in which Indian Government has a role in Indian economy
===Notes for teachers===
===Notes for teachers===
It is important to understand that the role of Government in economic activities is very important one. This is also changing, in some areas the government is withdrawing and giving the space to the private sector, it is also expanding in some other sectors. Comparing the role played in India with other countries can help in broadening our understanding. Wikipedia has many articles relating to this topic which should be read to give a deeper understanding.
===Activities===
===Activities===
#Activity No #1 '''Concept Name - Activity No.'''[[Economy_and_government_role of government_activity1]]
#Activity No #1 '''Concept Name - Activity No.'''[[Economy_and_government_role of government_activity1]]