There are many ways I have identified that the national and local government in the US economy impacts me personally. In fact, I would believe that the government impacts me personally in almost every facet of my life. However, here are a couple examples of the more significant ways it impacts me economically. First, I am employed part time through the Army Reserves, in which my paycheck comes from the federal government's budget. This increase in money, however small, increases my ability to purchase certain goods and/or services. Second, at the local level here in Madison, WI, we have quite a few zoning ordinances, that regulate where, how and what you can build on your property. Economically, this could impact decisions you want to make concerning your home, costs, and property layout. A lot of these zoning ordinances affect you negatively, because they generally cause you steeper costs for building things on your property, and in turn, cause a change in the market for what is sold or supplied in the area. As was the case when my family tried building a new garage.
Factors that could shift the demand curve could be changes in individual income, changes in substitute goods among other firms, consumer expectations and tastes, and changes in consumer composition. Factors that could shift the supply curve could be from changes in technology, prices of resources, changes in expectations, number of producers, and changes of prices in substitute goods. Of course, all of this could change through government intervention as well. Based on the table provided above, the equilibrium price would be at 1.50. At that point, the quantity supplied equals the quantity demanded (16). Belle buys 6, Buck buys 10. Juan supplies 7, Valdez supplies 9.
Question for the group, if anyone could answer it for me. Other than providing a military and a judicial system (to act as safeguards to individuals and businesses for private property), can anyone give me examples where the government has provided a service that couldn't be provided or done more efficiently through a capitalist market?