US Domestic Policy I

Government Regulation

Economic Policy

  • Goals

    • Promoting stable markets

      • Make system stable/predictable

      • Maintaining law and order and minimizin monopolies

    • Promoting economic prosperity

      • Keep positive investment climate

        • Securities and Exchange Commission

        • Public investment

      • Build confidence in the economy

      • Pays for research through the National Institutes of Health and National Science Foundation

      • Ways to make the country more prosperous → Keeping inflation low

        • Main tool for this is the federal reserve

    • Promoting business development

      • Tariffs

      • Subsidies

        • Grants/Aid (Public Good)- Transportation

        • Direct Subsides - direct assistance to businesses through the small business adminstration; government investments

      • Free trade (Lowering tariffs)

        • Allowed American businesses to develop free from tariffs

    • Protect consumers and employees

      • Unionization made easy through the National Labor Relations Act (1930s)

      • Fair Labors Act (1930s)

      • Set federal minimum wage

      • Occupational Safety and Health Adminstration sets up regulations

      • Food & Drug Admin along with 1000s other regulations protect us

      • National Traffic and Motor Vehicle Safety made cars safety

History

  • Before 20th century, government didn’t do much

    • Supreme Court interpreted the Commerce Clause to mean government regulation was generally not allowed

    • This changed with the development of railroads

      • Possible for a national market for goods

      • Congress could regulate as they were interstate entities

      • Discriminatory pricing was banned with the 1887 Interstate Commerce Act

      • Interstate Commerce Commission

  • Gilded Age (1870 - 1900)

    • Runaway Capitalism

    • Modern Coporate Structures

    • Industrial capitalists

    • First wave of regulatory legistation was passed in response to this era

  • Federal Trade Commission & Sherman and Clayton Acts

    • Counter monopolies

    • Didn’t have huge effects on the economy

  • New Deal

    • Adminstrative & Regulatory state

  • 1970s - Big wave of government regulation

    • Focused on economy as a whole

  • Despite attempts at deregulation, the adminstrative regulatory state is hear to stay