The economic system of the United States is principally one of private ownership. Yet the government has to some extent always been involved in regulating and guiding the U.S. economy. Since the government has strong influences on both, businesses and consumers, it feels responsible for setting the proper technological starndards and promoting only the best technology. It also promotes economically efficient prices and high standards of quality in the market. In other words the main reason for the government to intervene is to promote efficiency and equity.
In the U.S. economic system, consumers, producers and the government make decisions on a daily basis, As a rule, consumers look for the best values for what they spend, while producers seek the best price and profit for what they have to sell. Government, at the federal, state and local levels, seeks to promote the public safety, assure reasonable competition, and provide a range of services believed to be better performed by public rather than private enterprise.
Entrepreneurs are free to develop their businesses, they are driven from the market, so only the most efficient and those who best serve the public remain in business. Consumers have made their concerns known, and government has responded by creating agencies to protect consumer interests and promote general public welfare. Government regulations can interfere with pure competition in order to promote other national policy objectives such as price and income stability, regional development or environmental preservation. .
The government regulates and controls private enterprise in many ways in order to ensure that business serves the best interests of the people as a whole. Regulation is usually considered necessary in areas where private enterprise has been granted a monopoly, such as in electric or local telephone service, or in other areas where there is limited competition, as with the railroads.
