How the US Government Plays a Role in Our US Economy Fiscal responsibility is an important part of stability, and the government must focus on maintaining economic stability. As we all know, government debts can quickly become a burden on the economy and weaken it. Macroeconomic policies change government credibility and strengthen political institutions. It is very important that our economy has credibility and stability because it is vital for us Americans to make long-term investment decisions that allow the U.S. economy to grow. The government provides stability by ensuring currency stability is maintained, enforcing property rights, and providing oversight that assures private citizens that their partners in transactions in markets are accountable. Allowing market participants to start putting their resources back to work in the areas where they would be most beneficial. President Obama's Fiscal Responsibility Summit last February demonstrated that he understood the urgent need for fiscal discipline. Congressional passage of the American Recovery and Reinvestment Act and the President's budget proposal make the goals of a sustainable budget and addressing nations' long-term fiscal priorities, such as entitlement liabilities, even more elusive . Administrations recently released mid-session reviews from the Office of Management and Budget that over the next 10 years, accumulated deficits will total $9 trillion, meaning debt held by the public will reach a staggering 77 % of GDP in 2019. If debt levels continue To grow faster than our economy, the United States will owe more than it earns. Government spending and deficits automatically increase during economic downturns due to increased demand for social security measures and declining tax revenues... middle of paper... ...monetary policy has been ignored in the social aspect of 'economy. Government intervention was and still is necessary to remedy the injustices that have evolved from economic liberalism. Antitrust laws were believed to prevent monopolies and cartels from weakening competition, labor laws were believed to protect workers' rights; public benefit regulations to prevent consumer exploitation, food drug laws designed to protect people's health, anti-pollution measures to preserve our environment, safety regulations enforced to protect workers from injury, and socioeconomic legislation to promote the common good. The amount of government regulation, restriction and intervention in the economy is substantial. No free markets and rapid innovations in technology and communications, the need for government intervention in the economy is necessary to correct abuses or promote general welfare.