Government Regulation

Government Regulation

• “Safety first vs. Safety second” is the big question

• Government makes laws that regulate every part of the economy

• Banks

• Factories

• Stores

• Schools

• Why does the government regulate the economy?

• Protect:

• Workers

• Consumers

• Businesses

• Environment

• Protection via regulation comes with a cost

• More regulation = Less Productivity (less $$$)

• Less regulation = More Productivity (more $$$)

• Balancing act

• There are no solutions. There are only trade-offs

• Government makes law — Government agency enforces law (regulates)

• Consumer Product Safety Commission (CPSC): 

• enforces federal safety standards 

• Environmental Protection Agency (EPA): 

• establishes and enforces pollution standards

• Federal Aviation Administration (FAA): 

• regulates and promotes air transportation safety, including airports and pilot licensing

• Federal Deposit Insurance Corporation (FDIC): 

• insures bank deposits, approves mergers, and audits banking practices

• Federal Trade Commission (FTC): 

• ensures free and fair competition and protects consumers from unfair or deceptive practices

• Food and Drug Administration (FDA): 

• administers federal food purity laws, drug testing and safety, and cosmetics

• National Labor Relations Board (NLRB): 

• prevents or corrects unfair labor practices by either employers or unions

• Occupational Safety and Health Administration (OSHA): 

• develops and enforces federal standards and regulations ensuring working conditions