Some government actions that are seemingly unrelated to regulating private lives, in fact, do so. The whole subject of government regulation in a “free-enterprise” capitalist economy can be highly complicated and is always controversial. Some contend that the most effective regulator is free-market competition among those seeking to attract the buying public. They argue that government regulation, by interfering with the marketplace, works to the disadvantage of both consumers and producers.

Advocates of government regulation, however, see greater need to monitor and guide the course of competition. They believe that a completely unrestrained market will inevitably lead to monopolistic practices, higher costs, underserved segments of society, and lower-quality goods and services. Administrative law is an important body of U.S. law pertaining to the legal authority of public administrative entities to perform their duties, and to the limits necessary to control those agencies. Administrative law has been created both by judicial decisions and by statute.

Making government regulatory policy has been regarded as a legislative power under the Constitution. Yet Congress and most state and local legislatures have found it difficult to write all the varied and detailed provisions that are a necessary part of governing a dynamic and complex society. The Justice Department is the cabinet-level executive agency responsible for the enforcement of federal law. At the local level, regulation of business activities most often involves granting licenses for operating taxis and establishments such as hotels, restaurants, and taverns.

Other kinds of local regulative activities, however, can be very significant, such as housing and building codes, zoning ordinances, and interagency transportation planning. There has been little research on local government regulatory impacts, which may be an unfair reflection on their scope and importance.

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