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regulation – регулирование,
direct control – прямой контроль,
direct assistance – прямая помощь,
reasonable profit – разумная прибыль,
fair competition –
честная конкуренция,
raise prices «unfairly» – поднимать цены необоснованно,
harmful drugs – вредные лекарства (наркотики),
social insurance program – программа социального страхо-
вания.
Government’s Role in the Economy
While consumers and producers make most decisions that mold
the economy, government activities have at least four powerful
effects on the U.S. economy:
i
DIRECT SERVICES. Each level
of government provides
direct services. The postal system, for example, is a federal
system serving the entire nation. The public education systems
are
primarily paid for by state, country or city governments. In
general, police and fire protection are the responsibilities of local
government.
i
REGULATION AND CONTROL. 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 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. Public policy permits such companies to make
reasonable profits, but limits their ability to raise prices “unfairly”
(as defined by the regulators) because the public depends on their
services.
Control is exercised to protect the
public when the Food and
Drug Administration bans harmful drugs, or requires standards of
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quality in food. In other industries, government sets guidelines to
ensure fair competition without using direct control.
i
STABILIZATION AND GROWTH.
Branches of government,
including Congress and such entities as the Federal Reserve
System, attempt to control inflation and depression, by adjusting
tax rates, the money supply and the use of credit. They can also
affect the economy by changing the
amount of public spending
by the government itself. Normally, the aim is a balanced federal
budget.
i
DIRECT ASSISTANCE. The government provides many
kinds of help to businesses and individuals. For example, tariffs
permit certain products to remain relatively
free from foreign
competition; imports are sometimes taxed or limited by volume so
that American products can better compete with foreign goods.
Government also provides aid to farmers by subsidizing prices they
receive for their crops.
Government supports individuals who cannot care for
themselves by making grants to low-income parents with dependent
children, by providing medical care for
the aged and through social
insurance programs that assist the unemployed. Government also
supplies relief for the poor and help for the disabled.
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