Laws can impact the economy in a variety of ways, from environmental and economic regulations to civil rulings. These different aspects of life in America can affect the way we purchase products, the way we work, and the way that corporations are run. Each of these aspects plays a major role in how legislation can impact the economy.
Environmental Laws
Environmental laws play a major role in the economy. Regulations put limits in place that control what corporations can do, with a focus on protecting the environment. Many people view environmental laws as something that hampers the economy. Others see these regulations as a way to protect the resources available, meaning that they can be used for years to come. While there is a heated debate on both sides, it cannot be denied that environmental regulations play a major role in the way that corporations are run. In turn, this impacts the economy of the nation in a different way. These rules also impact the way that people work, which influences the way that they are able to spend their income. All in all, environmental laws have an important role to play in the economy.
Civil Laws
Civil laws, though less often considered as something that affects the economy, do impact the way people spend their time and money. Changes to civil laws can affect the economy in several unique ways as well.
In an article published by the Apex Tribune, there was a discussion on lowering the legal drinking age from twenty-one to eighteen. The main supporters for this want to prevent binge drinking in college, but opponents suggest that this will merely lead to more high school dropouts. A change in the law could drastically impact the way that alcohol is sold, as well as potentially removing the desire of college-aged students to binge-drink. Alcohol-related deaths are one of the most common causes of death in young adults, so a change in the legal drinking age could reduce the number of deaths per annum.
Economic Growth
Changes to laws can also affect the economy. The Congressional Budget Office has looked at a set of possible changes for a series of laws. These laws are related to tax cuts and will change the economy in both the short run and the long run. While the idea provides a boost in the short-term and allows citizens to pay fewer taxes and gain more advantages from the government, the Congressional Budget Office (CBO) feels that in the long run, this is unstable. These law changes could very likely lead to a form of economic instability, and this is not something that the CBO would recommend.
Laws are put in place to protect citizens from a variety of threats and they can affect the way the economy works on many levels. From making changes to environmental and civil laws to encouraging economic growth, law changes have a bigger impact than most of us realize.
