Internet Assignment1. The California Budget ChallengeHow does the general economy affect government budgets? What is the role of government in helping economic growth? Government revenue comes from taxes. When the economy is doing well, money continues to circulate within the economy. The more transactions there are within the economy, the more revenue the government can generate. This is the case for sales taxes and other commercial taxes. The government also derives a large portion of its revenue from property taxes. If the economy is doing well, it is likely that more citizens will become homeowners instead of renting. When the economy is not doing well, money stops flowing and the government may not collect as many 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. It 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 defended 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 most difficult to make? Which program cuts or tax increases have been the most difficult? For what ? The amount of funding for education was the most difficult to determine. This education system seems very inefficient and the huge delay in teachers' pensions has limited the more favorable budget. Well-educated students lead to a more productive economy, but many do not take advantage of the many untapped resources that the government has prevented businesses from taking advantage of. I believe that reducing restrictions could lead to economic growth as has been seen in other states that have used fracking to generate large amounts of growth. Regulations - https://www.youtube.com/watch?v=Zh1KzKURfVc&index=6&list=PL46A5304D2D15400FLibertarian Party-issues-taxes - http://www.lp.org/issues/taxesLP-issue-liberty-of-expression - 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