Figure 10.2
Both federal and state legislators create agencies to fulfill a specific purpose, usually related to
protecting the public from a potential threat. (Credit: kbhall17/ pixabay/ License: CC0)
Industrialization
Administrative agencies have been around almost since the founding of the United States. However,
industrialization had a big impact on the development of administrative laws. As people moved from farms
and rural areas to cities to find work and raise families, the economy changed. It became more complex. As a
result of this economic change, the government saw a need to expand its regulation to protect and support
the public. In the 20th century, the number of agencies expanded very quickly with the addition of the Food
and Drug Administration (FDA) to regulate food and medication, the Federal Trade Commission (FTC) to
regulate trade, and the Federal Reserve System (FRS) to regulate banks. These are just a few of the agencies
created to regulate industries. Ultimately, this expansion occurred in response to the complexity of the
economy.
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Chapter 10 Government Regulation
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