Does the US Over Regulate and Control the Free Market

Governmental Policies

In a laissez-faire economic system, the role of the government in influencing the marketplace is basically minimal, as in the government keeps itself out of the market. The idea behind this is that the market is self-regulating and should be left alone as much as possible. Governments in such systems typically limit their activities to enforcing contracts, maintaining law and order, and providing a few basic public goods such as infrastructure.

However, the role of the U.S. government in the economy significantly expanded starting from the 1930s, during the era of the New Deal under President Franklin D. Roosevelt. This expansion was in response to the Great Depression, which led people to question the viability of laissez-faire economics. The government intervened in various sectors of the economy, providing direct relief, implementing regulations to prevent financial sector instability, initiating large public works programs, and much more (American Government, n.d.). Since then, the U.S. government\\\\\\\'s involvement in the economy has been enormous to the point that it resembles a command economy.

Regressive taxes and progressive taxes represent two different ways in which taxation can impact different income groups. Regressive taxes take a larger percentage of income from low-income individuals than from high-income individuals. Sales taxes are a common example of regressive taxes because everyone pays the same rate regardless of their income level. Progressive taxes, on the other hand, take a larger percentage of income from high-income individuals than from low-income individuals. The U.S. federal income tax is generally progressive, as tax rates increase with income (American Government, n.d.).

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Mandatory spending and discretionary spending are two major categories of federal government spending. Mandatory spending includes expenditures that are required by law, such as Social Security, Medicare, and Medicaid, as well as certain elements of the safety net like food stamps. These are expenditures that the government is obligated to make under current law.

Discretionary spending, on the other hand, is spending that is determined through the annual appropriations process in Congress. This includes funding for a wide range of government programs and agencies, including the Department of Defense, Department of Education, and Environmental Protection Agency, among many others. Unlike mandatory spending, discretionary spending can vary significantly from year to year.

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The social safety net refers to a collection of services provided by the state or other institutions such as friendly societies, including welfare, unemployment benefit, universal healthcare, homeless shelters, and sometimes subsidized services such as public transport, which prevent individuals from falling into poverty beyond a certain level.

Distributive policies and redistributive policies are two types of public policies that governments can implement. Distributive policies are those that distribute resources in a society, often from the government to particular segments of the population. These can include policies related to public education, highways, and tax incentives for home ownership, for instance.

Redistributive policies, on the other hand, involve shifting resources from one group to another. This is typically done by taking resources (through taxation) from wealthier segments of the population and distributing them (in the form of government spending) to less wealthy segments. Programs like welfare, food stamps, and Medicaid are examples of redistributive policies. These policies are often controversial and subject to ongoing political debate.

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The \\\\\\\"Two Presidencies\\\\\\\" thesis is a political science theory proposed by Aaron Wildavsky. The thesis holds that U.S. Presidents have greater latitude and influence in foreign policy than they do in domestic policy. This theory suggests that presidents are more successful in achieving their policy goals in the international arena because they face fewer checks and balances there than they do on the home front.

However, neither side inherently takes precedence as it is contingent on the circumstances, priorities of the president, and the state of affairs. For example, in a time of war, foreign policy might take precedence, while during a domestic crisis, the focus might shift to domestic issues.

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Fiscal policy and monetary policy are two key tools that governments use to influence the economy. Fiscal policy involves the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors.

Monetary policy is the process by which the monetary authority of a country, like the central bank, controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

The Federal Reserve Board, also known as the Fed, is the central bank of the United States. Its primary charge is to implement monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy. The Federal Reserve also oversees and regulates banks to ensure the safety and soundness of the nation\\\\\\\'s banking and financial system.

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The two major social welfare programs in the U.S. are Social Security and Medicare.

Social Security is a federal program that provides financial benefits to retirees, disabled individuals, and their survivors. It\\\\\\\'s funded through payroll taxes and provides a basic level of income to recipients.

Medicare is a federal health insurance program primarily for individuals who are 65 or older, but it also covers some younger people with certain disabilities.

An entitlement program is a government program that guarantees certain benefits to a particular segment of the population who meet specific eligibility requirements. These programs are called \\\\\\\"entitlements\\\\\\\" because individuals who meet the requirements are \\\\\\\"entitled\\\\\\\" by law to receive the benefits. Social Security and Medicare are both examples of entitlement programs. Medicaid (health care coverage for people who are at certain poverty thresholds) is another example.

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Isolationism is a foreign policy approach that advocates for a country\\\\\\\'s non-involvement in international political alliances, economic commitments, and wars, in favor of focusing on developing the country\\\\\\\'s own advancement and defense. Historically, the U.S. was largely isolationist from the founding of the nation until the early 20th century, when the Spanish American War saw the US expanding its influence to the Philippines in the Pacific (American Government, n.d.). This global reach continued with the US’s role in WW1 and again later with WW2. In this manner, it abandoned its isolationist stance of the 19th century.

It now embraces liberal internationalism, which supports greater international cooperation and integration. This policy approach suggests that international laws, organizations, and agreements can help to maintain peace and global order. The United States moved toward this policy approach in the mid-20th century, particularly after World War II, when it took a leading role in creating institutions like the United Nations and the World Bank.

Neo-isolationism is a modern variant of isolationism that arose after the Cold War. It suggests a significant reduction in U.S. involvement in international affairs, although not a complete withdrawal. Supporters typically argue that U.S. over-involvement abroad has led to unnecessary military interventions and economic commitments.

Selective engagement, meanwhile, is a strategy that suggests the U.S. should be very deliberate about where and when it chooses to involve itself in international issues. The focus should be on areas that are vital to U.S. national interests, while avoiding overextension.