The United States Government's Influence On The Economy

Ways that the government can affect the economy
The U.S. government used to have a laissez faire policy with everything that had to do with the economy. Today the government is an important factor in the economy and helps keep the economy stable. There are many ways that the government watches over the economy; it passes laws that affect how business is done, protects workers and helps keep the middle class heathy, makes sure bussiness do not mislead consumers, and banned dangerous substances from being made in the U.S. There are many ways that the government othe United States affects the economy.
The government regulates and controls different parts of the economy for a variety of reasons. The most important reason it to keep the economy

stable. Sometimes events can happen that will cause the economy to sink into a recession or depression. THe government tries to keep this kind of thing from happening by manipulating different parts of the economy. Another reason that the government regulates the economy is to give economic security to all americans. This means that they are making sure that nobody gets less than they deserve. For example, in the early 1900’s many factories payed their employes almost nothing and the employees could not live on it. THe U.S. government makes sure that nobody does this kind of thing anymore.
The Government also directly directly influence businesses. The government does not allow the sale of certain goods which can harm consumers. This has an affect on the economy because it can destroy companies that make products out of harmful substances. The government also monitors businesses to make sure that they earn all of their money legally, pay their taxes, and don't cheat their shareholders out of any money. Lastly the government makes sure that no companies in the U.S. are severely damaging the environment. This is because in the past companies in the U.S. have manufactured and sold chemicals like DDT which went into waterways and caused environmental disasters in parts of the America.
There are several different ways that the United States of America influence the economy.

The government has the power to raise or lower the minimum wage. This will instantly cause a change in the economy because it will raise or lower the value of the dollar based on if it is raised or lowered. Another way that the government can influence the economy is by buying and selling government bonds. If the stock market is failing then the government buys up bonds and increases their value. Then when the economy is on the rise and does not need the assistance of the government the bonds are sold. This is effective because it has an instantaneous effect on the economy.The government also uses its control of short term interest rates to keep the economy

stable.
One example of the U.S.

controlling the economy is in the 1890’s. At that time there were several large corporations that controlled many parts of american society. The government eventually dismantled these companies. Now when to large companies merge together they have to get permission from the government first. The government then looks over the two companies and decides whether or not they create a monopoly if they were to merge. If they would then the government will deny the merge. THis is because the government does not want any one company to control an entire market again.
Another example of the government controlling the economy by regulating a business happened in 1918. At that time many companies used false advertising to convince consumers to buy their products. The American government passed a law that banned false advertising which caused a short catastrophe as all of the businesses that relied on false advertising.
In 1881 the United States of America legalized unions. This was a large change in the America because it gave power to the workers that had previously at the mercy of larger corporations. In the next fifty years Unions grew in power and began to slowly get shorter work days and higher minimum wages. The unions had a massive effect on the economy because the workers became middle class workers and stimulated the

economy.
The government has stopped certain companies from operating in the U.S. One example of this there used to many DDT factories in the U.S. However, eventually americans learned that there were consequences for using DDT. The consequence was that some areas in the united states were destroyed because the DDT had damaged parts of the environment. Soon after that the United States banned making DDT in the United States.
The government has many ways that it can affect the economy. it has kept the markets stable and helped bailout banks to keep the economy from going into a recession. It has enabled laws that protect its workforce and help grow the middle class. It has regulated businesses to make sure they do not missadveratize or cheat stockholders out of their money. The government also has made it illegal to create certain substances in the U.S. that are harmful to the environment. The reason that the U.S. government regulates the economy is because it is trying to keep everyone safe.