Governmental Involvement in the Business World :: Essays Papers

Governmental Involvement in the Business World The government has played a role in business in our history. They have had positive as well as negative effects on business in America. That is what I am going to be looking at for this essay. The government has played a vital part in issues such as the excessive power that businesses have had. The government has also helped get rid of many kinds of prejudices against women, the elderly, the poor, the disabled, and against many racial and ethnic minorities. These changes began with the New Deal being of Roosevelt. After the implementation of the New Deal the wage gap began to gradually close between the richest and the poorest of Americans. This can be credited to laws and along with other government actions that were put into place during Roosevelt's presidency. Things such as Social Security, unemployment benefits, minimum wage all these things and much more were introduced by the government to better the lives of the working public. Government supervision increased in the 1930s and several industries became regulated by the government, such as trucking, airlines, electric utilities, and interstate gas. Other industries as well were kept under government regulation until the 1970s and 80s when they realized that the New Deal ideas that were passed in an emergency, were inappropriate in the long run for certain industries. The Securities Act of 1933 and the Securities Exchange Act of 1934 required that all companies that were traded on the stock exchanges as well as banking firms and securities industries issue to stockholders and to the government detailed annual reports. These would contain information essential to the consumers. Also railroads and utilities were required to submit annual reports to regulatory commissions. The regulatory commissions and the annual reports were created to make sure that laws would be followed. The laws benefited the investment banking industry in the long run, because it helped companies sell stocks and bonds by giving investors confidence in the decisions they were making. The early 1930s were a time of serious deflation and federal price supports were