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Where do state and local governments get money?
Federal, state, and local governments need money to operate too. Governments have no money except for the money they collect from the citizens. Federal, state, and local governments collect this money from the citizens through taxes. Governments collect this tax money and use it to provide services for the citizens. At the federal level, the United States government uses tax money to pay for the military and to build interstate roads. It provides other goods and services that benefit the people. State and local governments use their collected tax money to provide schools and libraries. Taxes also pay for local police and fire department services. City and state roads are built by the tax money collected from the citizens of Arizona. Most people do not like to pay taxes, but taxes are part of living in a modern Arizona and America.
What is an entrepreneur?
Some citizens get an idea to start a new business for other citizens. They often take their own money to begin a new business. These people are called entrepreneurs. An entrepreneur is someone who takes a chance and starts a new business or service. If the citizens of Arizona like the new business or service, the entrepreneur will make money. If the citizens do not like the new business or service, the new business will fail. When the business fails, the entrepreneur then loses their business and their money. Sometimes entrepreneurs borrow money from banks or other money lending businesses. The bank has money from the working citizens who have put their money into the bank as savings. When a bank lends money to an entrepreneur, the bank charges interest. Interest is a fee charged by the bank for a business or person to use the bank’s money.
Some Arizonans make a living by taking good care of animals.
Chapter 15 • People at Work Today 149
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