|
|
DEPOSIT INSURANCE: A program of guaranteeing, or insuring, customers' deposits at a bank or similar institution. Since the 1930s bank deposits have been insured by the Federal Deposit Insurance Corporation (FDIC). Other programs have insured deposits at credit unions and savings and loan associations. The FDIC works like this -- If a bank is unable to pay back all or part of its customers' deposits because it has done something like go out of business, then the FDIC steps in to make up the difference--up to a pretty hefty limit.
Visit the GLOSS*arama
|
|
|
|
                           PUBLIC SECTOR: A common term for governments, including all three levels--federal, state, and local. It is termed the public sector to indicate that decisions are made by governments on behalf of the public. The contrasting phrase is private sector, in which decisions are made by private individuals (either consumers or producers) in pursuit of their personal self-interests. The public sector is another term for the government sector. It includes the activities undertaken by government employees (elected, appointed, or other) when they are working on behalf of governments. The public sector is best specified from a functional perspective--by what people do, not who they are. While the private sector, in essence, includes every member of society, it does not include everything that everyone does. People are part of the public sector when they are serving in elected public offices, working in the military, or working for a government agency. However, they are part of the private sector when they are buying goods, working in factories, running companies, and engaging in voluntary market exchanges.Government SectorThe government sector includes all levels of government, including federal, state, and local. The primary function of the government sector is to force resource allocation decisions that might not otherwise be made by the rest of the economy. Governments rely on the ownership and control of resources to coerce or force specific allocation decisions. This ownership and control may result from collective decision-making (that is, elections), such as what exists in a democracy; or it can be obtained by force by a power-crazed dictator with a large army. Through whatever means the public sector obtains its power, the prime question is how the power is used. Like fire, public sector power can be used for good or bad. Some well-meaning (usually with a liberal bent) folks see assorted problems of markets and market-based economies (including, but not limited to, market failure inefficiencies at the microeconomic level and business-cycle instability at the macroeconomic level), and look to the public sector for solutions. Other equally well-meaning (primarily with a conservative view) folks see the myriad of public-sector failings and the perpetual threat to individual freedoms of an oppressive government, and view government as the source of problems, not the solution. An Ongoing Allocation DebateA distinction between the public sector and the private sector reflects the two basic methods of answering the three questions of allocation--governments and markets. The public sector relies on government decisions that are involuntarily imposed on the economy, but, in theory at least, are made on behalf of the public. The private sector relies on markets and the private ownership and control of resources for voluntary allocation decisions.The terms private sector and public sector reflect the ongoing debate over the degree of government involvement in the economy. Some debaters (liberals) say that a lot of involvement is needed, others (conservatives) say very little is needed. While this debate is unlikely to be concluded (EVER!), evidence to date indicates some government intervention can be useful, just not too much.
Recommended Citation:PUBLIC SECTOR, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: October 13, 2024].
Check Out These Related Terms... | | | | |
Or For A Little Background... | | | | | | | | | |
And For Further Study... | | | | | | |
Search Again?
Back to the WEB*pedia
|
|
|
RED AGGRESSERINE
[What's This?]
Today, you are likely to spend a great deal of time calling an endless list of 800 numbers trying to buy either storage boxes for your family photos or a large, stuffed giraffe. Be on the lookout for door-to-door salesmen.
Your Complete Scope
This isn't me! What am I?
|
|
|
North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
|
|
|
"Progress begins with the belief that what is necessary is possible. " -- Norman Cousins, editor, writer
|
|
SIC
Standard Industrial Classification
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
