In recent years, the debate over the appropriate level of government involvement in regulating the economy has intensified. Supporters of increased regulation argue that government intervention is necessary to ensure fair practices, protect consumers, and address disparities in wealth and opportunity. Conversely, opponents contend that excessive regulation stifles innovation, limits economic freedom, and ultimately harms consumers.

Based on this context, construct an argument that addresses the following prompt:

To what extent should the federal government regulate the economy? Support your position with relevant evidence, and articulate how this regulation can align with or contradict democratic principles.