hese regulations came out of an environment in which businesses employed children and offered working conditions that were considered unacceptable by many workers (Goldin & Margo, February 1992, p. 14).
Regulations regarding employee relations go beyond minimum wages and working conditions. Workers' compensation programs offer assistance to employees who are injured, and unemployment insurance gives payments to employees who are laid off through no fault of their own. These are largely state-run programs, but the federal government has an effect on the overall philosophy and, in the case of unemployment insurance, can extend the period of time that individuals can receive benefits (Kristof, December 31, 1991, p. D3).
In addition to providing laws and regulations regarding the relationship between employer and employee, government also regulates the way in which businesses conduct themselves in the community. This is a fairly recent area into which government has ventured, and has arisen from events such as the pollution at Love Canal and, more recently, the grounding of the Exxon Valdez in Alaska. As a result of these and other events, businesses are now held more accountable for the environmental situations that they create as a result of their business. Some communities have strict regulations regarding air pollution while others focus on water pollution, but the result is that businesses are now held more responsible for their actions with regard to the environment.
While many government regulations seek to protect consumers, employees and communities, government at all levels (local, state and national) seeks to promote business opportunities in order to keep companies within the area. Cities, for example, may offer tax incentives to businesses who choose to locate in their area, or to keep companies from relocating to other areas where the cost of business is less. These tax incentives may include a lower property t...