Question

what is government? give at least three difference between state and government?long
answer

Answer 1

1: The federal government issues our national currency to fund our national net savings. States are funded by taxes, borrowing and federal grants. The federal gov, on the other hand, issues our national currency at will. We use the dollars it issues to pay tax and invest in treasury bonds.
2: The federal government sets interest rates, ie, the price of money, a core price.
3: The federal government outsources money creation to private banks and stands behind banks to insure that the credit/debt they create is denominated in the government’s unit of account, the dollar. Thus, bank credit/debt floats in the economy as though it were government money - rather than money Wells Fargo just creates out of thin air.
These 3 things should indicate some of the ways the federal government creates markets and should abuse us of the notion that markets are creatures of the state. In this case the federal government.
Of course states also shape markets - as exemplified by their rush to provide Amazon huge tax breaks to lure Amazon to their state