Government Regualtion Of Business

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Government Regulation of Business
Introduction
Across the globe, many businesses and corporations have advanced complains about the government regulation and its nature. From the initial times of its introduction, government regulations such as income tax and anti-trust laws have either improved or deteriorated businesses. On the other hand, government regulations have protected consumers from exploitations advanced by expeditious business owners. Thus, the question of government regulation remains a puzzle.
Arguments Against
The business community has long been a criticizer of the government regulation. Corporations have denounced the importance of government regulation citing that it’s only a waste of time. For instance, the tax levy has been a thorny topic for most corporations who argue that it undermines business profitability hence it’s only a scheme for the government to source its funding. As such, many businesses default government laws; for example, in the 2007-2011 financial crisis, many corporations presented false financial statements to improve their money market position (Kitching et al., 143). Also, many firms have been at fault for illegal release of waste into the environment and poor social responsibility. The Federal Trade Commission has been at constant fault from the American business community who argue that it’s a foe to business by engaging in price-fixing and misleading advertisements (Kitching et al.

, 146). Also, the FDA has been at fault for intentional withdrawal of drugs from the market, although the drugs have initially proved to work well.
Pro-Arguments
The government provides a regulatory framework for fair competition as well as providing necessary information and services to corporations, entrepreneurs, and consumers. For example, in the US, the Small Business Administration and the U.S Commerce Department have supported and improved small business financially as well as assisting in oversee marketing. Economic scholars note that the most important benefit of government regulation is the rule of law and consumer protection. For instance, the patent and trademark policies protect inventions from malicious competition (Kitching et al., 142). Also, government price-fixing ensures that consumers are not exploited by businesses.
Conclusion
In any business, the market players are businesses and consumers. As such, the government plays a critical role by acting as an independent regulator in the market. Therefore, government regulation is very important since it helps create fairness in competition as well as protecting consumers.
Work Cited
Kitching, John, Mark Hart, and Nick Wilson. “Burden or benefit? Regulation as a dynamic influence on small business performance.” International Small Business Journal 33.2 (2015): 130-147.