Describe the relations between the government and business in the United States
The United States ostensibly operates in a free capitalist market. The government does not make central decisions regarding who produces what, or how much of a given commodity should be produced. This is the type of control that characterizes centrally-planned economies such as that of the former Soviet Union. However, it is a mistake to believe that the United States has a truly independent economy that is free from government intervention. Instead, the government influences business through a variety of regulations and laws that place restrictions on business. At the same time, industry lobbies government officials in order to procure regulations and laws that are favorable to specific industries and even to specific companies. The result is an uneasy alliance between business and industry that is, at times, conciliatory but which can also be acrimonious.
Business seeks an environment which is largely free from government restriction (Dentzer, June 6, 1994, p. 61). Such an environment would enable companies to reap the maximum profit from their operations without having to be concerned with government regulations regarding how they conduct their business. The cost of doing business would be reduced, and stockholders would see larger returns on their investments. However, government has an interest in maintaining its regulations. There are several reasons for this, but one of the most often-used is that of protecting the national interest of its citizens. If business were left to conduct business in any way it chooses, the argument goes, it would do so at considerable social and environmental cost to the public.
It is from this type of reasoning that regulations now considered commonplace grew. For example, companies must comply with labor regulations regarding the minimum pay, environmental conditions and minimum age for workers. T...