Historically, government regulatory activities have taken one of two forms: putting certain limits on prices and practices of those who produce commercial goods and services, and promoting commerce through incentives, grants, or subsidies, on the theory that such payments are a public investment that will yield greater returns for the consuming public in the form of better goods and services.
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.
The Rise and Fall of Government Regulation
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