Business: legal Environment

Realizing the serious damage that could be caused to the country's economy by trade barriers, the US Constitution includes a provision prohibiting the states from creating such obstacles. And trade in the United States flows freely from state to state.

Traditionally, leaders of the US government have been reluctant* to become involved in the private sector, except for the transportation. In general, the federal government has been influenced by the concept of free enterprise. But this attitude began to change during the later part of the 19th century. By the turn of the century, a new middle class had arisen. Its leaders supported governments which actively tried to regulate business practices. Thus, a law regulating the railroads was enacted in 1887 and another law preventing large industries from controlling a single industry was passed in 1890. So, legally speaking, the US government began to influence business quite a long time ago.

During the Great Depression*, it was the government that undertook massive public works programs.

Nowadays, the government regulates and controls private enterprise in many ways, for the purpose of assuring that business serves the best interests of the people as a whole. Regulation is especially necessary in areas where private enterprise is granted a monopoly, such as in telephone or electric service, or in other areas where private enterprise is granted a monopoly. Besides, administration bans* harmful drugs*, or requires standards of quality in food.

In the United States, the governmental intervention into business is aimed at creating fair and favorable conditions for its functioning. Therefore, the respective* laws are worked out and adopted.

Notes

be reluctant — не желать что-л. сделать, упорствовать

the Great Depression - Великая депрессия

ban — запрещать

harmful drugs — наносящие вред лекарства, наркотики

respective — соответствующие