Why is economic stability important to governmental purposes?

Answer 1

Economic stability ensures a happier population that the government works with. In times of economic instability, the citizens of a state are often prone to rioting and rebelling in hopes of improving the economic situation. Also, governments that improve the economic situation are often favored for improving the lives of the state's people and are supported much more readily.

Answer 2

Economic stability is not an important governmental purpose.

The U.S. government created the private Federal Reserves system to favor large banks. The Federal Reserve facilitates economic instability by writing checks (that cannot bounce) to buy debt. This lowers interest rates to artificially low levels. In a free market (unlike ours) low interest rates signal large amounts of capital to borrow. Thus, businesses and entrepreneurs are induced into borrowing too much and investing in too many ventures. The actual capital does not exist, so all these ventures cannot be completed. Then you get a bust, the Fed reduces the interest rates even more, more malinvestment occurs, and the cycle repeats.

Answer 3

The United States government primarily ensures economic stability by it's adherence to the longest-running written constitution in the history of the world. America's 239 years of peaceful transition of government enables business interests to plan long-term. The American system of government remains unchanged, the Dollar remains America's sole currency, and the unique system of House-Senate-President-Supreme Court remains the envy of the world.

Answer 4

People who are in a tempestuous economic circumstance often revolt to solve the problem. Thus, when the government maintains economic stability, the people are benefited.