Question You don’t need to write this down What should the government protect? What do you think President Trump’s main focus has been?

Business and Labor Policy

Protecting and promoting Business A more recent focus of government, dating back a little more than 100 years Free Trade Elimination of trade restrictions means lower prices for consumers Tariffs are used to protect American industries from foreign competitors

Protecting and promoting Business Federal Subsidies Tax Incentives – businesses can deduct certain expenses from their tax returns Government Loans – funding for businesses at a low rate Free Services – i.e. weather reports, census data Cash Payments – production at a lower cost

Protecting and promoting Business Commerce Department aid to businesses Provides information, financial assistance, and research and development services Help for small businesses Small Business Administration offers many programs to help small businesses stay competitive

Regulating Business Constitutional Basis – “lay and collect taxes” and Commerce Clause Demand for reform Up until the late 1800s, the government took a laissez-faire approach to the economy Rapid industrialization of the economy meant that by the late 1800s, the economy was dominated by large businesses Americans demanded fairness in the marketplace In 1887, the Interstate Commerce Act placed the first regulations on the railroads

Regulating Business Sherman Antitrust Act 1890 Vaguely limited the formation of monopolies Enforced in 1906, when the government charged Standard Oil of creating and maintaining a monopoly Clayton Antitrust Act 1914 Clarified the Sherman Antitrust Act Prevented charging high prices where there was little or no competition Prevented people from serving on the boards of competing companies

Consumer Protection Before 1900, many corporations were not overly concerned about the safety and health of their products Protection against false advertising Federal Trade Commission protects consumers against misleading or fraudulent advertising Product Safety Consumer Product Safety Commission was created in 1972 to investigate harmful products

Consumer Protection Regulating the sale of stocks The Securities and Exchange Commission has the trading of stocks and bonds since the Great Depression All corporations that issue public stock have to file regular reports on their assets, profits, sales, and other financial data

Government and Labor Protecting unions and workers The government’s stance on labor changed in the early 1900s with the Clayton Antitrust Act which had a provision that protected unions By the end of the 1930s with the New Deal, labor unions and workers gained rights to collectively bargain The Taft-Hartley Act of 1947 limited certain types of unions, while also legally protecting labor strikes