2006-12-03 01:55:25 · 4 answers · asked by fly_away100 1 in Social Science ➔ Economics
Many of the problems we face in business is over regulation by government. The more business is regulated the less productive the business becomes and the higher the operating costs to comply. This results in higher consumer prices. One reason so many foreign products have found their way into the U.S. market it because of too much government interference. It is also a reason the U.S. has lost so many jobs. It is sometimes easier to move the company off shore rather than dealing the all the excess government regulations. The less control government exercises, the better for business and the consumer.
2006-12-03 03:05:37 · answer #1 · answered by Flyby 6 · 0⤊ 0⤋
In a limited capacity, yes. Without controls, business would be in a position to abuse it's power, ie. monopolies could be established whereby one company, conglomerate, a cartel
would be in a position of total control as to dictate and
manipulate the production, distribution, and pricing of goods where the poor would be at a disadvantage. Why sell to the poor when the rich can pay more. Also, the government is the biggest consumer of goods in the economy and it is in a position to influence what goods should be produced in the country . By basic definition economics is the study of the allocation of scarce resources to maximize satisfaction of human wants. ie. food vs makeup ( i guess that's why models are thin, they chose makeup). On the other hand, too much government interference can produce unsatisfactory results, such as in the USSR during the cold war period even to the present where the East although advanced technologically in the production of war armaments can barely provide a decent level of existence to its citizens.
Only in a perfect society could we do away with government intervention, but the way it is right now, that is surely a long way off.
2006-12-03 05:06:00 · answer #2 · answered by pilgrim 2 · 1⤊ 0⤋
A liberal economic system with perfect competition is the best system in my opinion. Government shouldn't act as an active manufactuer of goods and services but rather it should act as a regulator and should ensure that competition is sustained.
2006-12-03 03:45:06 · answer #3 · answered by daniel_cohadier 3 · 0⤊ 0⤋
Yes. To protect customers.
2006-12-03 02:03:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋