Governments can act as a leading driver for specific investments and even for industries. This only began recently in the middle of the twentieth century when government spending started to really pick up as a driver for the economy. In recent years we have seen massive investment in new technologies. One of the most pressing and most enduring issues in the political field. It involves regulating the market, securing minimum incomes, providing more “equality” but also ensuring that the incomes are distributed as near as possible. This also means taking from the rich and distributing it to the poor.
All roles of the governments need funding and also redistribution. No matter if providing public goods like education, spending on infrastructure, or distribution of income. All spending have to be “earned” somehow at a certain point in time. For a government, it is a key role to determine the taxation system and its effect on the economy, social equality but also other factors like competitiveness and more. Especially this role is one of the most discussed ones and leads also internationally to a lot of tensions when so-called “tax havens” appear.
