The Governments Role in Shaping the US Economy

Role of Government on the Economy Name Institutional Affiliation Course name Instructor’s name Assignment due date Role of Government on the Economy The government and politics play a major role in the economy and determining solutions for challenges affecting the country. A necessary government agency influencing the economy is the U.S. Agency for International Development since it partners with international organizations to influence international and global trade. Locally, the Federal reserve regulates the cost of borrowing through interest rate changes. However, some of the government’s regulations on trade are unnecessary and should be minimized to allow free economic activities (Day, 2022). The control of the debt ceiling is a political gimmick that involves the politics of the Congress and the executive. Additionally, the government’s control over the valuation of currency fails to address the underlying economic issues. While the government’s role in economic diplomacy and controlling inflation levels are necessary, regulating the debt ceiling and the valuation of currency should be minimal since they are political tools with minimal benefits. The United States economy depends heavily on the local and international actors influencing global trade. One of the necessary agencies controlling the country’s economy is the U.S. Agency for International Development that works wit