ECOCB535_Comp2_Mod4_Reflection.doc Comp 2/Module 4 - Reflection University of Phoenix ECOCB/535: The Digital Economy Comp 2/Module 4 “ Reflection The US government plays a large role in economics and financial mar
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ECOCB535_Comp2_Mod4_Reflection.doc Comp 2/Module 4 - Reflection University of Phoenix ECOCB/535: The Digital Economy Comp 2/Module 4 “ Reflection The US government plays a large role in economics and financial markets. The government has the ability and lawful right to influence the economy. This is done through passing legislation governing the market, overseeing the availability of goods the private sector does not provide, and controlling income distribution (McConnell et al., 2018). Interventions in economic activity by the government are meant to balance and stabilize it; however, this often does not work according to plan. There are many times where the government fails to improve economic activity or a particular situation and actually makes it worse. There are many reasons why this might happen, but most pertain to the nature of how the government operates and breaks from public interests. Two examples of how the governments intervention in an economic situation failed are railroad regulation and government owned public companies (McConnell et al., 2018). Railroad Regulation The government established a railroad regulation entity known as the Interstate Commerce Commission, ICC, over a hundred years ago to address the growing concerns of unfair and monopolistic pricing in the railroad industry. There were only a few railroad companies and limited destinations at the time leading to excessive railroad rates. The ICC was formed to regulate competition and pricing in the industry to better serv. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .
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