The Evolution Of Government Economic Regulation In The United States

The study on economy and economic development of United States of America has always been one of the focus of world economy study for American most developed economy and its major role in world economy. This research studies the American economic regulation policy. U.S.A. was the first to completed the evolution of the government regulation system on economy although its typical free-market economy. This research will study the influence of the historical evolution of economic regulation policy on America economy, considering the government relationship with market, and the reason behind the transformation from the corrupted involvement of government official with businessmen to later.The theory foundation of this research begins with essential theory of government relationship with market followed with the brief existing opinions based on time order,and then introduced the foundational ideas of economic regulation policy with details. This study first introduces the economic regulation idea during the establishment of the nation when the characteristics of current regulation policy formed gradually with the conception of nationality and government from the colonial time. The American government managed to control the over exercise of its power and behavior from the establishment under the influence of freedom thoughts, which, however, gradually enforced its impact with the U.S. economic development despite of the restrains.The regulation policy appeared with the evolutionism movement, which represented the demands of certain social levels of redivision of economic development benefit. This study believes the regulations policy was the optimized options of American government in the involvement of international economy game and reveals that specific historical situation impacted on regulation policy evolution with the account of the Depression and Roosevelt's New Deal. This study wants to reveal that the evolution of the policy is historical and the aftermath of the society development, the reason of which should be discussed from different aspects instead of economy only.The evolution of regulation policy was promoted with Keynes policy, the changes of the necessary environment for the policy sped by the development of economy, and transformation of the structure the government involvers. America, a developed market, needs to show its ability to reallocate the resource shortage, according to the mainstream economic ideas, which believes all the countries in the same history period or the same country in different history period needs to allocate the resources shorted. The Stagflation in 1970s drove the American government to adjust the regulation policy again to ease the people's resentment of Stagflation and their belief in free market, though the government had demonstrated enormous ability in manipulating the economy with different society system. U.S. government chose to loose the regulation policy under the pressure of Stagflation and the pursue of efficiency as the standard for system provision.The regulation policy did not die out after 1970s and regained its place when the market loose its balance in high-profitable sector, revealed by the Wall street Scandal and California electricity shortage crisis. The government regulated the marketing running environment according to higher-efficiency principle again.The study concluded that the American government has been balancing the cost and the benefit within different channels with pursing the greatest economic benefit as the logic point and the belief as the standard. People's evaluation system to cost and benefit changes with time and the regulation policy deviates from its aim with environment changes, which generated the government changes on regulation policy. Therefore, the government regulation policy is the outcome of the government structure, a biological reasonable system with the government policy, the regulation outcome determined by the reactions between involvers and the historical forces and coincidences. There is no perfect regulation policy evolution route despite of the government's effort, but only most propitiated arrangement of policy through the adjustment and creation, an outcome of human behavior. The orientation of regulation policy evolution is unpredicted yet partial evolution is estimated. The impact of regulation policy is greater than expected and will touch most areas of both business management and government through their relationship.The American regulation policy evolved during the development of free market. The ultimate principle of American government was to promote economy, through all means, instead of the social ideology judgment. The drawback of market began to dampen the society and economic development of American from the end of 19th century and regulation policy helped the development of economy from beginning of 20th century. The application of regulation policy has prevented radical social changes or skipping in American history, a characteristic of American society development. The government performance is positive accredited for the efficient government regulation to narrow difference between the individual benefit and social aims and continuous economic development.