Government & Policy

Governments can have an enormous impact on the economy. Learn how the government affects taxes, trade, markets, interest rates, and more through policy, regulation, and legislation.

Frequently Asked Questions
  • How does the government control inflation?
    The most common way governments control inflation is by raising or lowering interest rates. Put simply, high interest rates counter inflation by reducing the money supply, and low interest rates promote inflation by increasing the money supply. In the U.S., the Federal Reserve indirectly controls interest rates through the federal funds rate, the interest rate banks charge each other for loans made overnight.
  • What is the difference between communism and socialism?
    Communism and socialism both advocate for a more equitable distribution of wealth than that achieved under capitalism, but they differ in their means and the extremity of their vision. A basic premise of communism is that a communist order is achieved through a revolution in which the working class (proletariat) overthrows the ruling class (bourgeoisie). Socialism insists on working within existing systems to implement reform. Communism also advocates the dissolution of all private property so that all property is owned by the state, which distributes resources evenly between citizens. Under socialism, the means of accumulating wealth (industry and commerce) are collectively-owned and managed by the government, but property like homes and personal possessions can remain privately-owned.
  • How much does the U.S. spend on healthcare?
    According to Centers for Medicare & Medicaid Services, U.S. healthcare spending is expected to reach $6.2 trillion, or 20% of GDP, by 2028. In 2020, spending per person was $12,530, the highest of any developed country. Norway, which ranked second in terms of healthcare costs, spent $6,748 per person, almost half of U.S. expenditures.
  • What is the difference between monetary policy and fiscal policy?
    Monetary policy refers to the actions taken by a central bank to achieve economic goals like low unemployment and stable prices. Monetary policy is often executed through the increase or decrease of the money supply. Fiscal policy refers to the government’s tax and spending plans. Fiscal policy is administered by the legislative and executive branches of government.
Key Terms

Explore Government & Policy

8xbet1Liên kết đăng nhập
U.S. National Debt by Year
The History of Labor Day
8xbet1Liên kết đăng nhập
Supreme Court 2023 Rulings on Affirmative Action Explained
8xbet1Liên kết đăng nhập
U.S. Debt by President: Dollar and Percentage
8xbet1Liên kết đăng nhập
Rulemaking for Federal Agencies
8xbet1Liên kết đăng nhập
Digital Markets Act (DMA): How the EU Law Will Work
8xbet1Liên kết đăng nhập
What ‘Slowcession’ Means for Economic Growth
8xbet1Liên kết đăng nhập
Pregnant Workers Fairness Act: Protections, Legal Remedies, Examples
8xbet1Liên kết đăng nhập
Federal Pandemic Unemployment Programs: How They Worked
8xbet1Liên kết đăng nhập
National Defense Authorization Act for FY 2023
8xbet1Liên kết đăng nhập
National Labor Relations Board (NLRB) Definition
8xbet1Liên kết đăng nhập
Office of Management and Budget (OMB)
8xbet1Liên kết đăng nhập
Who Is Rishi Sunak?
8xbet1Liên kết đăng nhập
Employee Plans Compliance Resolution System (EPCRS): What It Is, How to Use It
8xbet1Liên kết đăng nhập
Bank Term Funding Program: Definition, Why It Was Created
8xbet1Liên kết đăng nhập
Federal Emergency Management Agency (FEMA): How It Works, What It Provides
8xbet1Liên kết đăng nhập
5 Reasons Why Supply-Side Economics Does Not Work
8xbet1Liên kết đăng nhập
U.S. Export Restrictions: What Are They, and How Do They Work?
8xbet1Liên kết đăng nhập
Sectoral Bargaining: What It Is, How It Works, Pro and Con Debate
8xbet1Liên kết đăng nhập
Largest Indigenous Groups in the U.S.
8xbet1Liên kết đăng nhập
What Is the Rural Energy for America Program?
8xbet1Liên kết đăng nhập
Financial Help for Climate-Friendly Farmers, Ranchers
8xbet1Liên kết đăng nhập
What Is the CHIPS and Science Act of 2022?
8xbet1Liên kết đăng nhập
Inflation Reduction Act of 2022
8xbet1Liên kết đăng nhập
What Is a Specific Performance Clause?
8xbet1Liên kết đăng nhập
Firsts for American LGBTQ+ People
8xbet1Liên kết đăng nhập
1973 Energy Crisis: Causes and Effects
8xbet1Liên kết đăng nhập
North Atlantic Treaty Organization (NATO)
8xbet1Liên kết đăng nhập
U.S. Trade Representative (USTR)
8xbet1Liên kết đăng nhập
Housing Trust Fund (HTF)
8xbet1Liên kết đăng nhập
Margaret Thatcher
8xbet1Liên kết đăng nhập
Oligarch: What It is, How it Works, FAQs
8xbet1Liên kết đăng nhập
Community Development Block Grants (CDBG) Overview
8xbet1Liên kết đăng nhập
Juneteenth: What It is, History, Other Freedom Days
8xbet1Liên kết đăng nhập
FTC Takes On Pandemic Predators
8xbet1Liên kết đăng nhập
Emancipation Day: Meaning, History, Versus Juneteenth
8xbet1Liên kết đăng nhập
Equal Pay Act of 1963: Overview, Benefits, Criticisms, FAQ
8xbet1Liên kết đăng nhập
Lifeline Program for Low-Income Consumers
8xbet1Liên kết đăng nhập
Social Insurance: What it is, How it Works
8xbet1Liên kết đăng nhập
Infrastructure Investment and Jobs Act: Definition and Summary
8xbet1Liên kết đăng nhập
Bank Merger Review Modernization Act
8xbet1Liên kết đăng nhập
Technology Modernization Fund (TMF)
8xbet1Liên kết đăng nhập
Biden's Proposals to Fight Emergencies and Climate Change
8xbet1Liên kết đăng nhập
Community Land Trust: Meaning, Pros and Cons, Example
8xbet1Liên kết đăng nhập
Section 230 Protection: Meaning, Criticism, Purpose
8xbet1Liên kết đăng nhập
SNAP Benefits by State
8xbet1Liên kết đăng nhập
Who Was Alexander Hamilton?
8xbet1Liên kết đăng nhập
No Surprises Act Definition, Improved Healthcare Transparency
8xbet1Liên kết đăng nhập
Paycheck Fairness Act: Meaning, Pros and Cons
8xbet1Liên kết đăng nhập
Rent Stabilization: What it is, How it Works, Examples
8xbet1Liên kết đăng nhập
Milestones in Gender Equality
8xbet1Liên kết đăng nhập
Supplemental Nutrition Assistance Program (SNAP): Overview
8xbet1Liên kết đăng nhập
Surface Transportation Board (STB): What It is, History
8xbet1Liên kết đăng nhập
Contract Buyers League: What It is, How It Works
8xbet1Liên kết đăng nhập
Federal Maritime Commission (FMC): Meaning, History, Key Statutes
8xbet1Liên kết đăng nhập
Women, Infants, and Children Nutrition Program (WIC)
8xbet1Liên kết đăng nhập
Single-Family Zoning: Definition, History, and Role in Racial Segretation
8xbet1Liên kết đăng nhập
Universal Service Fund: Meaning, Components, Future
8xbet1Liên kết đăng nhập
Infrastructure Negotiations in 2021: How They Unfolded and Results
8xbet1Liên kết đăng nhập
Who Are the Richest U.S. Senators?