States authorities affect the economy by altering tax rates and types, expenditure quantities and forms, and debt amounts and kinds. The U.S.’s government operates in a unique way as compared to other countries. As an illustration, various accounts can be used to justify this variation. The U.S. government actions are different from other economies because of such initiatives as reduced regulatory and tax burdens to its citizen and a lack of free-market healthcare systems in the universal healthcare program.
The U.S. government cushions its economy through reduced regulations and taxations. For instance, through the Federal funds rate, the U.S government promotes economic prosperity. Due to this, American taxes are lower than those in other high-income nations. Across all divisions of government in the U.S. in 2018, taxes comprised 24% of GDP, relative to a median of 34% for comparable high-income nations (Dajani, 2021). However, similar to the U.S., most nations typically offer a wider range of federal programs.
The U.S. government controls its healthcare programs with a non-free-market healthcare system. As such, a greater tax burden has results from the universal healthcare policy. For instance, the U.S. has one of the lowest tax-to-GDP ratios among 34 advanced countries, at 26% (Urban Institute & Brookings Institution, 2020). In this situation, converting to a single-payer system in America may result in higher taxation. However, in most nationalized health care countries, there is a thriving secondary private insurance sector for those with the resources to pay. For example, all taxpayers in the U.K. contribute to a national healthcare system (Urban Institute & Brookings Institution, 2020). Conversely, the American government has chosen to implement a convoluted combination of commercial insurance and government-funded initiatives that are managed by private organizations.
In conclusion, government actions in the U.S. are different from other countries through such activities as Federal Reserve and non-free-market healthcare system in the universal healthcare program. Despite the Federal Reserve acting to lowers regulatory and tax burdens to its citizens, the lack of free-market healthcare programs introduces increased tax burden. As such, it is evident that that U.S.’s government actions are different from other nations.
References
Dajani, K. (2021). Health care in America is the best in the world.
“Urban Institute & Brookings Institution.” (2020). Briefing book: A citizen’s guide to the fascinating (though often complex) elements of the US tax system.