C H A P T E R 2 1

SOCIAL & DOMESTIC POLICY

BUSINESS & LABOR POLICYSECTION I

TOPICS

• Promoting & Protecting Business

• Regulating Business

• Government & Labor

• Free Trade (NAFTA)• Why might the U.S. want free

trade around the world?• Federal Subsidies• Commerce Dept.• Help for Small Business

• Regulating Business• Which is better for business?• More regulation• Less regulation

• What can you tell me about Upton Sinclair?• The Jungle

• Promoting & Protecting Business costs the government MONEY

PROMOTING & PROTECTING BUSINESS

REGULATING BUSINESS

• Consumer Protection• There would be meat stored in great piles in rooms and

the water from leaky roofs would drip over it, and thousands of rats would race about it…These rats were nuisances, and the packers would put poisoned bread out for them; they would die, and then rats, bread, and meat would go into the hoppers together. – Upton Sinclair, The Jungle

• Consumer Protection Laws• False Advertising Laws• Consumers and Product Safety• Regulating sale of stocks (SEC)

GOVERNMENT & LABOR

• Government and Labor• Unions – Wagner Act guarantees the rights of all

workers to organize and bargain collectively*• Act of negotiating labor contracts

• Regulating Unions – Taft-Hartley Act attempts to restore balance between labor and management

• Ex: Fast Food Workers

• Does a minimum wage cost the economy jobs?• Does a minimum wage force business to share the vast

wealth with the people that help produce it?• Should we have a minimum wage?

TYPES OF FEDERAL SUBSIDIES

• There are four major types of federal subsidies• Tax incentives• Business can deduct

certain expenses from their tax returns

• Government loans or credit subsidies• Low interest rate loans

• Free services• National Weather Service

• Direct cash payments• Farm Bill