The U.S. Legal System allows Capitalism to function within stable, reasonable, and defined limits. It is based upon Common Law, which originated during the Middle Ages, it is all about fairness.
Capitalism is a theory, economic, and political system which allows trade and industry to by controlled by private owners for profit. It relies on competition in the free market, private ownership, and means of production.
Law in the United States of America comes from:
- The Constitution is a basic law framework. It is based on the premise that all power rests in the people, and by mutual consent, the people have granted the U.S. Government the power to make laws within specific parameters outlined.
- Statutory Law is created by Congress.
- First introduced as a Bill, or proposed law, it must be passed by both Houses of Congress (House of Representatives + Senate)
- Then, the President must sign a Bill in order for it to become enforceable law.
- The President has Veto power. He may reject it, but Congress may override that decision if 2/3 (two-thirds) of both Houses of Congress favor the Bill.
- State Legislatures then mirror the role of federal Congress. The State Governor mirrors the role of the President and it becomes enforceable law.
- Administrative Law is created by federal & state legislatures in order to fulfill and enforce statutory law. Some of these agencies created include the: IRS, FAA, FBI, FTC, NSA, and Peace Corps.
- Caselaw is judge-made law used to fill in the blanks in all other (3) sources of law. There are always new legal issues Congress has yet to contemplate or even address, so individual judges have the power to set legal precedence, or what other courts have decided within similar instances. Judges then apply the law & logic used previously in order to fairly decide towards a specific and present case.
So, these all relate somehow and getting a new Bill drafted, circulated, and enacted into enforceable law is a slow and painful process.