3.1.2.1 Regulatory Control by Politicians and the Law
Economic regulatory control by politicians, sometimes using the law, affects the private sector as well as the public sector
A government exercises regulatory power over an economic system, using its political authority and obtaining legislative approval where necessary. Its political ideology (6.2.1) plays a part in determining its policy on regulation. It is more likely to favour light regulation if it is more market-orientated, wanting to grant more independence to businesses, for example. The tension between individualism and collectivism (2.2) surfaces in several aspects of economic power.
The economic regulatory control by politicians, which is more fully described below (3.3.1), should ensure that the economy works efficiently, fairly, and without causing harm. It constitutes a rulebook for economic activities and a framework for negotiations. The processes by which regulations are introduced are matters for later chapters: legal powers (5.3.2) or political decisions (6.1.3).
This page is intended to form part of Edition 4 of the Patterns of Power series of books. An archived copy of it is held at https://www.patternsofpower.org/edition04/3121.htm.