What are the key reasons for government regulation of the Private sector?

Question

Why should we regulate natural monopolies? Whay do we need antitrust laws? what is meant by deregulation? Why should we deregulate some industries?

Answer 1

The most dominant reason for regulating the private sector is its unfettered pursuit of profit. Pricing of products and services is based on huge margins and the consumer has to suffer heavy payments for acquiring those products and services. In the reckoning of the private business persons, a distinction would not be made if a product is a basic necessity of the people or an item of luxurious consumption. They load their flat and very high margins of all prices as a universal formula for financial prosperity through super profits. A very unwholesome consequence is the perpetuation of disparities in the distribution of wealth and power. Business people profit and grow very rich while consumers on the margin need to shell out and turn poor. Operation of the private sector follows the principles of free market, open competition, and 'survival of the strongest'. Thus, concentration of wealth and power begin plaguing society. Even nepotic tendencies grow and public welfare is replaced by private aggrandisement and swelling of private coffers. Thus, the urge to regulate private sector would be very great whenever public goods, public welfare, and egalitarian approaches become paramount. A well known spoil of the private sector is the creation of monopolies, practice of unfair trade practices, and usurping of market power and to curb these and kindred tendencies, anti trust laws are put on the statute book.
Deregulation is a more recent trend which has caught up tempo all over the world in the wake of spoils of government control and excessive regulation of business and industry. These tendencies promote red tape, delays in sanctions and permissions, bribery and corruption, and loss of opportunities coupled with political favors. Many nations have found deregulation to be paying off good dividends. Even the erstwhile
totalitarian regines have now been disintegrated and seem to be heading toward more of freedom of enterprise and market mechanism.

Answer 2

You made some good factors notwithstanding the final analysis for me is this: in a usa, the position human beings nonetheless ought to artwork for minimum wages and the position educcation is so expensive that barely each person may have the funds for it and in a usa that is been in conflict for 10 years now human beings nonetheless anticipate that the debt is down, the funds is balanced, yet anybody receives all the coolest advantages? as well, our economic device is amazingly heavily tied to the global economic device--there are commerce agreements which could be commemorated--you won't be able to easily say "no can do" i don't have the money now--that is the same with this new warm debated difficulty about Medicare: what do you anticipate? The previous worked all their lives and now were given to work out medicaid go up the roof? And better of all, the only which plans that ought to imagine that we are one gullibe those who will swallo this, because see, shifting Medicare into the own sector received't protect the precedence. it will strengthen the present health care rates and strengthen the rates for the elderly by technique of a minimum of qoo p.c.. i'm in simple terms of the opinion that typically human beings could be forced into something for his or her own good(i.e. health care)with the intention to have the destiny advantages for a complete usa(fit those who artwork extra on account that they want to take a lot less sick go away day without work).

Answer 3

If you want to know the reasons for gov't regulation, all you need to do is look at you history book and look at the early 20th century. Monopolies and unfair competition are the reason. I know you've hear of a game called Monopoly. The game was based on realty events happening in the early 20th century. People like John D. Rockefeller with "BIG OIL." You want to know how big, imagine Exxon, Mobil, Chevron, and Amoco all in one company (Standard Oil). He paved the way to any future would be corporate crooks. He would plant bombs in other corporation refiners and lower oil prices to drive them out of business. Then when they left the market, he raise the price above what would have naturally occurred in the market so that he could make up the money he lost when lowering the price. No one would under cut him because there wasn't any other competitors. Another big Monopoly what the railroad. It was pretty harsh. Not to mention the steel business. US used to be the larges exporter of steel, and every steel maker wanted to be the only one.

Answer 4

Because if we have just a single company in an industry, they could set any price they want for their goods and we will be forced to buy because we will need it and have no way around it.

Answer 5

How about just one "key" reason .... Human Greed.