The Australian Economy: role of government

The government has many  important roles to play in the Australian economy. These roles include:


There are two basic economic problems that the government tries to solve in managing the economy. These problems are inflation and unemployment. In Australia, the government is continually trying to manage or solve these two problems.

Discussion Questions
  1. In what ways does the government try to solve inflation?
  2. In what ways does the government try to manage unemployment?


In a market capitalist economy like Australia, the government is concerned that income is distributed fairly between all members of society and that all members of society are able to earn some form of income.

Discussion Questions
  1. In what ways can people earn income in Australia?
  2. How does the government provide for those who are unable to earn their own income?
  3. How does the government play a role in distributing income more fairly in Australia?


A third role of government in a market capitalist economy is to make sure scarce resources are allocated as efficiently as possible. In doing so, the government is making sure everyone has access to a reasonable  standard of living – things like access to health services, education and transport.

Discussion Questions
  1. Do you think the government should be responsible for providing services like health, education and transport?
  2. Should business play in providing basic service in the economy?
  3. What is privatisation? What are some basic services that have been privatised in the last fifteen years?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s