Role of Government in Economy Essay Example | Topics and Well Written Essays - 2250 words

Role of Government in Economy - Essay ExampleThis was done for the security measures of the interests of the investors and capitalists of that time because the newly born country was not in a position to support its providence on its own and the confidence of the investors had to be make up. The strategy was successful and was the most significant chemical element behind the rapid economic growth of the country in the immediate years after the contend of Independence. However such a strategy could not have lasted forever and therefore during the later part of the 19th century farmer and labour movements started to come on in different parts of the country in protesting about the oppressive behaviors of the investors and capitalists. Under these circumstances, government had to change its strategy and with the emergence of the first labor unification in 1820s the government started intervening in the economic affairs of the country. The emergence and establishment of labor unio ns in the country was a significant factor in bringing about a revolution in the economic life of the country (Danny). These changing conditions resulted in the formulation of an educated middle physical body in the country which forced the government to introduce regulations in the business practices in order to ensure the provision of rights to the employees, establishment of free market scrimping and to ensure quality control. The Sherman Antitrust Act which ensured the presence of competition in the market by barring large enterprises from establishing a monoply in a case-by-case industry and the Interstate Commerce Act, a restrictive mechanism for the railroad industry which required the railroad fares to be kept within a bonnie range, are two of the very first pieces of legilation completed by the congress regarding the rescue of the country. These acts were enforced as laws during the years of the progressive Republican death chair Theodore Roosevelt (1901-1909). Presi dent Roosevelt was of the opinion that the rapid economic progress of the country has made it mandatory for the government to introduce regulatory mechanisms regarding commerce, industry, finance, planning and economics. Therefore a number of regulatory bodies and institutions were formed during Roosevelts and President Wilsons years in the office. These include Federal Trade Commission, Food and Drug Administration and Interstate Commerce Commission. In response to the Great Depression, the government of President Franklin D. Roosevelt came up with the idea of three Rs Relief, Recovery and Reform. This strategy required the government to directly involve in the economy of the country and thus during the implementation of the New Deal, an era of rapid economic reforms in the country, governments involvement in the economy of the country reached its broadside (Fishback). The idea of public welfare was practically adopted by the government in the New Deal era and many important laws which govern the economy of the country today were formulated during this time. The government started patronizing labor unions and the standards for minimum salaries and fixed working hours were established during this tim