Internet assignment1. California's Budget ChallengeHow does the overall economy affect government budgets? What is the government's role in helping the economy grow? Government revenue comes from taxes. When the economy is doing well, money continues to move within the economy. The more transactions within the economy, the more revenue the government can make. This is the case with sales taxes and other trade-related taxes. The government also derives much of its revenue from property taxes. If the economy is doing well, more citizens are likely to own property rather than rent. When the economy is not doing well, money stops circulating and the government may not collect as much taxes. There are two main views on the role of government in the economy, the Keynesian view and the laissez faire view. The Keynesian view is often shared by liberals and democrats. This is the belief that it is the government's responsibility to regulate and attempt to manipulate the economy. This is often characterized by taxes, subsidies and wealth redistribution. The laissez faire philosophy is supported by Republicans and libertarians. In a laissez faire economy, the market determines where money flows. Those who participate in the market determine supply and demand by how they spend their time and money. What decisions were the hardest to make? Which program cuts or tax increases were the most challenging? Why? The amount of education funding was the most difficult to determine. This education system appears to be very inefficient and the huge backlog of teachers' pensions has limited the most favorable budget. Well-educated students lead to a more productive economy, but there are many who do not accept... middle of paper... there are many untapped resources that the government has prevented businesses from taking advantage of. I believe a reduction in restrictions could lead to economic growth, as seen in other states that have used fracking to bring large amounts of growth. Works CitedLibertarian Party Platform - http://www.lp.org/platformOpt out of gov. Rules - https://www.youtube.com/watch?v=Zh1KzKURfVc&index=6&list=PL46A5304D2D15400FLibertarian Party-issues-taxes - http://www.lp.org/issues/taxesLP-issue-freedom of speak - http:/ /www.lp.org/issues/freedom-of-speechLP-issues-immigration - http://www.lp.org/issues/immigrationCalifornia State Constitution - http://www.leginfo.ca.gov/. const/ .article_5Elect Tim Donnely-issues-responsibility - http://www.electtimdonnelly.com/issues-responsibilityElect Tim Donnely-issues-Prosperity - http://www.electtimdonnelly.com/issues-prosperity