The appropriate role of government in the economy consists of six main intervention functions in the market economy. Governments provide the legal and social framework, maintain competition, provide public goods and services, national defense, income and social welfare, correct externalities, and stabilize the economy. The government also provides policies that help support the functioning of markets and policies to correct situations where the market fails. As well as driving the overall pace of economic activity, attempting to maintain steady growth, high levels of employment and price stability. By applying fiscal policy that adjusts spending and tax rates or monetary policy that manages the money supply and controls the use of credit, one can slow or accelerate the growth rate of the economy in the process, influencing the level of prices and employment increase or decrease. Governments provide the legal and social framework in market economies by establishing and protecting rights to private property and the economic gains derived from the use of that property. The government's protection of private property extends to land, factories, stores, and intellectual property. Intellectual properties are protected by exclusive rights, called copyrights, to protect things like books, music, films, and computer software programs, etc.; or patents, protect other types of inventions, designs, products and production processes. These granted exclusive rights give holders the right to sell or market their products and creations for a specific period of time. National defense is another example where the role of government is indispensable, because people do not pay for each unit.... .. middle of paper ...... let the “invisible hand” guide everyone in their economic efforts, create the greatest good for the greatest number of people and generate economic growth. Smith also delved into the dynamics of the labor market, wealth accumulation, and productivity growth. His work was later found to be accurate, after the Great Depression took place, allowing government interference by reducing taxes and increasing government spending. Overall, the appropriate role of government has always been a topic of debate as to whether it is actually helping our economy or whether the government is gaining too much power in the markets. However, the economy could not prosper without the actions imposed to facilitate the diffusion of power in the markets and the regulation and enforcement of the law so that things are done in a way that is beneficial to both consumers and markets..