Final answer:
Major policy issues concerning the size and budget of the government include the roles and responsibilities across government levels, and the impact of taxation and spending. It is debated whether the U.S. should have a balanced budget, given the need for fiscal flexibility during unforeseen events. These policies directly affect economic stability and business regulation.
Step-by-step explanation:
The Policies of Government Size and Budget
When discussing the appropriate size of government, the major policy issues include considerations about the government's role in the economy, the responsibilities of each level of government, and the outcomes of taxation and expenditures. The balance between protecting citizens from unfair or harmful business practices and promoting a strong economy requires careful regulation by government entities. Whether it is realistic for the U.S. government to balance its budget is a topic of debate, especially considering that most economists agree that fiscal policy should remain flexible to deal with crises such as wars or recessions. Persistent budget deficits can pose issues, but measures like balanced budget amendments may be too restrictive, preventing essential, albeit temporary, deficits from being addressed.
Policy issues are constantly debated, wherein questions about sufficient tax revenue, equitable tax imposition on individuals and corporations, and appropriate levels of government spending come into focus. These discussions directly impact the economy, as well as touch upon the growth and regulation of businesses, which are crucial elements of domestic policy. As such, these governmental policies shape the interplay between government functions and private enterprise, affecting every citizen's life profoundly.