Society, Government, Economy

Society is a system of people living together. For it to exist, the people must follow certain rules: don't cheat, don't steal, don't kill, etc. So society created a system to make these rules and enforce them. That system is called 'government'. So the purpose of the government is to make and enforce rules.

To live, people need many things – like food, clothes, houses, etc. People obtain these things by making and exchanging them with others. They do this as individuals, families or groups. These make up the economic system or the economy. So the economic system is made up of individuals, families and groups/companies. And its purpose is to produce goods and services, and sell them.

Thus in society, many different functions need to be performed. And society has developed a system to carry out each of those functions. For society to be efficient, each system must perform only its function – it must not perform any other function. If a system performs a function other than its own, then society will become inefficient.

So the government's job is making and enforcing rules – not making and selling products and services. That is the job of the economic system (individuals, families and companies). If the government tries to do the job of individuals, families and companies, it will lead to an inefficient society.