Should the government regulate businesses? Should the Government regulate businesses? If so, what kinds of laws does the government need to make? If not, why not?

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lrwilliams eNotes educator | Certified Educator

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I feel that government should have some regulations as mentioned in post #8 in regards to safety issues and things that effect the environment. I also however feel that they should leave the day to day operations of business alone. The recent business bailouts are the start of government control of businesses.

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enotechris eNotes educator | Certified Educator

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The purpose of government is to safeguard rights, not regulate business.  Capitalism works precisely because it allows markets to fail.  Congress fails precisely because it attempts to regulate markets. The bad products, the poorly run businesses under Capitalism die a market death, and the better products, the well run businesses live a market life.

Except if you're GM.  Except if your some other large influential business that has Congresspeople under control through your lobbyists, then your crappy business doesn't die, but lingers on, exacerbating the economic problems, because the moribund business then is allowed by blessing of Congress to compete against the better (yet sadly less congressionally influential) companies.

These then cannot flourish as they should, and moreover are put at a huge disadvantage, since they didn't get any free money from the government. Why give your tax money to the government, who can then turn around and give it to some favored business?  It's your money; why can't you favor some business as you see fit?

Government should stay out of business. Now Congress runs GM.  Watch how good the cars become. Meanwhile, Toyota can't make enough Priuses.  Which economic model would you consider superior when having to part with your hard-earned money to buy a car?  The model produced by government mandate, or the model produced by a solvent, profitable car company?

If a business is violating rights, then it is the purpose and responsibility of government to redress the violation, creating laws as necessary, and curtail or alter that business activity, and that's it.

If government would confine its activities regarding business to that, good business would flourish, bad business would diminish, and rights would be preserved.  It's as simple as that.

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Dayna Watsica eNotes educator | Certified Educator

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That question is so broad that I has to have a yes and no answer. There are a lot of business out there. However, if you are speaking of a general answer, I would say that the government should stay out of the the private sector. I know that this is minority position in this current economic climate, but all this current government intervention may produce more problems in the long run. I think what is assumed (and it...

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epollock | Student

Business is already regulated since they have to file incorporation papers, pay wages and abide by federal rules in paying social security, payrolltaxes, etc. They also have to abide by everything from enviornmental laws to air quality statutes.

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krishna-agrawala | Student

Some degree of government regulation of private business is necessary in the general interest of people in the society. Such control is exercised by all countries in the world including countries like the USA, which are supposed to be the most capitalist of all the capitalist countries very staunch belief in democratic system of government.

The most common way of regulating private businesses in most of the countries is through its system of taxation and tariffs. These are fixed by the government to support and promote certain type of industries and business practices, and discourage others. In particular there is heavy regulation of foreign trade in form of these tariffs as well as other non tariff barriers like direct restriction on import or export of certain items, or specifying other conditions that restrict international business activities.

In addition to this there are many other laws that regulate business and industrial activities. These include the very general laws of contract that affect business transactions, or law directly intended towards regulating businesses. These deal with issues like, monopolistic practices, consumer safety and and protection of consumer interest, conditions and terms and employment, and industrial safety.Another very important objective of government is to protect the environment.

All these laws are necessary to prevent and control deliberately unethical business practices on part of businesses, to protect the consumers and employees from unfair use of economic power by big companies, and to factor in impact of activities businesses and consumers on others external to thee relationship between them.

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