List three reasons why early governments developed.

Big government—we heard a lot about it when Ronald Reagan was first seeking the Presidency. Lately the topic has attracted less attention from politicians, commentators, and scholars. But the thing itself has not disappeared. Over the past decade, as over the past century, American government has continued to grow.

Our nation was founded by men who believed in limited government, especially limited central government. They were not anarchists; nor did they espouse laissez faire. But they did believe that rulers ought to be restrained and accountable to the people they govern. If the founders could see what has happened to the relation between the citizens and the government in the United States during the past two centuries, they would be appalled.

The size and scope of government are important for many reasons. By virtue of their taxing, spending, and regulating, governments affect the allocation of economic resources, the distribution of wealth, and the rate of economic growth. Governments determine the very nature of our political economy, the character of the social organization within which we may lawfully conduct our affairs and pursue our goals. The size and scope of government determine—they are, so to speak, the opposite side of—our freedoms.

b) the confederacy had to pay all union war expenses.