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quality in food. In other industries, government sets guidelines to
ensure fair competition without using direct control.
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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.
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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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