Limited Government


DEFINITION of 'Limited Government'

A political system in which legalized force is restricted through delegated and enumerated powers. The United States Constitution, and particularly the Bill of Rights, were designed to limit government's role to what America's founding fathers saw as government's most essential functions: To preserve individual liberty and protect private property.

Individuals differ in their concept of a limited government, but one common interpretation is that a limited government is one that levies just enough taxes to provide for national defense and police protection and otherwise stays out of people's affairs.


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BREAKING DOWN 'Limited Government'

A system of limited government, for example, generally does not concern itself with matters such as what wages employers are allowed to pay to employees (minimum wage), how individuals may invest funds for retirement (Social Security) or how many miles per gallon a vehicle must get (CAFÉ standards).

However, there are varying degrees of limited governments. The opposite of a limited government is an interventionist government.

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  1. In what types of societies does limited government work best?

    Limited government intrusion – economically and socially – works best in societies where private property rights are respected ... Read Full Answer >>
  2. How do you make working capital adjustments in transfer pricing?

    Transfer pricing refers to prices that a multinational company or group charges a second party operating in a different tax ... Read Full Answer >>
  3. How much money does Florida make from unclaimed property each year?

    Each year, goods such as money, financial investments and physical property are either auctioned off or appraised before ... Read Full Answer >>
  4. How much money does New York make from unclaimed property each year?

    According to the Office of the New York State Comptroller, types of unclaimed property accounts include bank accounts, wages, ... Read Full Answer >>
  5. What is the Social Security administration responsible for?

    The main responsibility of the U.S. Social Security Administration, or SSA, is overseeing the country's Social Security program. ... Read Full Answer >>
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