Page 472 - Sociology and You

442 Unit 4 Social Institutions Figure 13.5 Examples of Government
Economic and Regulatory Assistance
The government is extensively involved in the U.S. economy. What would Adam Smith say about this?
Public utilities are often owned and operated by state or local governments.
The agricultural industry feels the influence of government through price controls and embargoes on exports to other countries.
Antitrust legislation exists to control the growth of corporations.
The federal government is heavily involved in the defense industry.
Business could not survive without publicly financed roadways, airports, and waterways.
Publicly funded public schools, colleges, and universities supply business with a skilled workforce and provide basic research for product development.
The U.S. military protects American international business interests.
Government supports business through tax breaks.
Legislation requires labor and business to obey labor laws.
commerce, development of a strong currency, creation of uniform standards for commerce, and the provision of a stable system of credit. In 1789, Congress supported our shipping industry through a tariff on goods im- ported by foreign ships. Since this initial move into the economy, the fed- eral government has continued to help business, labor, and agriculture. For example, the federal government aids private industry through loan guar- antees—as in the 1979 government guarantee (up to $1.2 billion) to bail out the Chrysler Corporation. Also, U.S. labor is supported by the government through regulations on such matters as minimum wages, maximum working hours, health and safety conditions, and unemployment support. Then there are the small farmers and agribusinesses that receive financial assistance amounting to billions of dollars each year (Patterson, 1999). See Figure 13.5 for additional examples of government economic and regulatory assistance.
Socialism
Socialism is an economic system founded on the belief that the means of production should be controlled by the people as a whole. The state, as the people’s representative, should own and control property. Under a so- cialist system, government directs and controls the economy. The state is ex- pected to ensure all members of society a share in the monetary benefits.
socialism
an economic system founded on the belief that the means of production should be controlled by the people as a whole