The government has three major economic functions: economic stability, income redistribution and resource allocation. The first two functions are mainly undertaken by the central government, not local governments. Because: the main means to achieve economic stability are monetary policy and fiscal policy, which are controlled by the central government; Income distribution has two meanings, that is, income redistribution between individuals and wealth redistribution between countries and regions, which needs to be borne by the central government. The allocation of social resources is mainly undertaken by local governments. In the form of providing local public goods. Local public goods are public goods whose beneficiaries are obviously limited by geographical space, and also have the characteristics of exclusive and non-competitive public goods.