Government functions in the Economy  Stabilize the economy  Provide Public Goods  Regulation of Business, Labor, Agriculture  Redistribute Income…Entitlements  Maintain a legal and social framework  Tax and Spend

Government Regulation The U.S. government regulates business, labor, and agriculture

Consumer Protection  Government intervenes in the marketplace to guard public health by:  Setting manufacturing standards  Conducting laboratory tests on food, medicine and other products  Providing consumer information about these products

Public Disclosure Laws  Require companies to give consumers full information about their products  Consumers use this information to protect themselves from dangerous products and fraudulent claims

PRODUCT SAFETY WuhOsVhzQ

Consumer Protection - Regulatory Agencies  Food and Drug Administration  Consumer Product Safety Commission (CPSC)  Federal Trade Commission  Securities and Exchange Commission

 Federal Communications Commission  Environmental Protection Agency  Ralph Nader - “Unsafe at any Speed”

LABOR

Labor  Occupational Safety and Health Act (1970)  Set safety and health standards for workers

Regulation of Labor Unions

AGRICULTURE

BUSINESS  Anti-Trust Acts

Business TTTTrade Agreements NNNNAFTA - North American Free Trade Agreement BBBBailouts – AIG; GM