1. Government's Role
in Business

2. The government fulfills many roles and performs many activities in business.

3. The Role of the Government
Protects Economic Growths Regulator Promotes Competition Provider of Service and support Protects employees and consumers

4. Promoting Economic Growth
The government:
increases/decreases tax rates
regulates amount of money in the economy with the Federal Reserve Bank
negotiates international treaties and trade agreements

5. Regulator - Law Maker Protect private property rights. EX: Patents EX:
Set up agencies to
Protect private property rights.
protect workers
and consumers.
EX: Patents
EX:
FDA
Trademarks
EEOC
Sherman Antitrust act (Monopolies)
OSHA
CPSC

6. Protecting the Natural Environment
Environmental Protection Agency (EPA)
was established in 1970
was created to protect the natural environment in which we live
stresses clean air, land and water
creates laws to prevent businesses from harming the environment

7. Regulating & Deregulating Industries
Regulation
is when the government sets strict rules affecting businesses within certain industries
Deregulation
is the removal or relaxation of the rules affecting businesses within certain industries

8. Promoting Competition
Acts passed to ensure competition:
Sherman Antitrust Act of 1890
allows the government to break up companies with control of a market
prevents monopolies
Clayton Antitrust Act of 1914
passed to amend and clarify the Sherman Antitrust Act
Federal Trade Commission Act of 1915
established the Federal Trade Commission

9. Promoting Competition
Federal Trade Commission
promotes fair competition
prevents false/deceptive advertising

10. Competitor
U.S. Postal Service competes with UPS and Fed EX TVA provides electricity to rural areas in the South, competes with electric companies National Parks and Campgrounds compete with privately owned tourist attractions.

11. Provider of Service
Also, the government is responsible for the social welfare system and providing Medicare and Medicaid.

12. Buying Industry's Products
The government buys goods and services provided by private industry
The government constructs and provides maintenance for transportation systems
Maintaining Means of Transportation

13. Supporter of Business Disaster assistance - FEMA
Small Business Administration – set up to provide educational materials to small business owners for success.
Largest consumer of goods (U.S. made) – military and defense materials.
Establish trade alliances - maintains relationships with foreign countries to ensure trade

14. Training & Supporting Business
The government:
provides information and training
publishes information businesses can use
rate of inflation, unemployment, consumer spending
provides direct loans, loan guarantees and subsidies of various types
established the Small Business Administration
provides low-cost loans, advice and other assistance to small businesses

15. Providing Trained Workers
The government regulates:
public schools, which offer instruction in skills relating directly to jobs in business
funding for rehab and retraining of workers
state and local employment agencies

16. Protecting Employees
Employees are protected through numerous government legislations designed to do the following:
provide a safe work environment
provide freedom from discrimination and harassment
protect from unlawful termination
ensure certain rights to privacy
provide the right to participate in labor unions
establish minimum wage

17. Protecting Consumers
The government creates laws and agencies protecting the eight basic rights of the consumer
Examples include:
Consumer Product Safety Commission
Fair Packaging and Labeling Act
Fair Credit Reporting Act

18. Role of Consumer
Deciding which businesses survive Determining prices

19. Business Survival
Consumers keep businesses in business. How?!?!