The US government has strong policies to regulate the nation’s economy. The fiscal policy of the federal government is aimed at regulating taxes and spending in the nation. The spending plan known as budget is issued by the president of the country to the Congress. The makers of law then analysis this budget in accordance with the total level of spending and taxes. This is then divided into various sections. This is then used to evaluate what proportion of money is used for various purposes. At the end the bill is signed by the president to bring it into effect.
US economy has a great intervention from private firms, yet they are under the control of the government of US. This regulation is mainly done in two ways. The economic regulation is done directly or indirectly. Monopolies were prevented by regulating the price of certain utilities and products beyond a maximum level of profit making. Market forces were under the control of the antitrust law.
Social regulations were extended to ensure that public health and safety is considered by controlling the private companies. Regulation of drugs and food products reaching the market was done by the government. Air, land and water was regulated by certain standards.
The department of treasury in United States introduced the paper currency known as United States Note. This is intended for circulation inside the country and was known as Legal tender notes. This is considered to be the first currency of US under the legal tender act of 1862.
The treasury department usually issues these notes directly and is the obligations of the government of US. Congress has set limitations on the issue of these legal notes. Aiming at an economic stability, the currency acts was set up in various years. This put a warning in the form of limitation of the notes that can be circulated and kept outstanding in the nation.
The US finance matters including bonded debt of the country, customs and deposit of public money are under the consideration of the Senate committee of US. This committee is a standing committee under the US senate. In role, this committee for finance is very much similar to the house committee on Ways and Means.
The Committee of Finance has control over both the Medicare and the Medicaid. The committee has various other powers including investigation, reviewing and evaluation of laws and the activities that govern them. The main aim in the setting up of such a committee was settling all issues connected to economy and currency.