The Role of Government Regulations in Human Economic Activities

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Table of Contents

Thesis section
Body of the argument
Conclusion
Works Cited

Thesis section

Since governments emerged in the evolutionary history of humans, they have been involved in the regulation of social, political, and economic activities of people (Ashcroft and Ashcroft 39). Governments are initiated with the aim of averting social anarchy and stagnation of development in society. Therefore, regulation is a process through which rules are made, applied, and adjusted according to the needs of the targeted society (Jennings 231). During the past 20 years, economic regulations by most governments have been enhanced.

Nonetheless, the decline in economic activities witnessed in the industrialized nations has been associated with strict government regulations of economic activities (Jennings 120). Most government regulations are aimed at protecting the well being of citizens especially when conducting economic activities.

However, the current regulations have made it almost impossible for most economic processes to proceed. The situation has been made worse due to incessant government demands and regulations for small and well established businesses. In comparison to the early 20^th century, the current regulations are failing the economic system.

It is evident that the disadvantages that emanate from government regulations tend to outweigh the perceived merits (Carroll and Buchholtz 390). Therefore, regulation of businesses by governments is unnecessary because the market forces such as demand and supply can effectively control the much needed dynamics of propelling business growth.

Body of the argument

Government regulation has been perceived by several people as the best way of ensuring accountability in the distribution of resources (Carroll and Buchholtz 684). Most stable governments have put in place measures to ensure that the rich donate more to the government that the poor.

Measures have been instituted in certain businesses in order to spur the growth of large companies that have helped most developed nations to realize the current economic status. These regulations often aim at redistributing and balancing resources in an economy. As much as the latter is usually the intention of governments, the practice has resulted into economic decline since the large companies are cutting down their expenses so that they can be able to meet the current regulations and expenses needed in running businesses.

In addition, unemployment rates have continued to rise as a result of the regulations on economic activities (Ashcroft and Ashcroft 365). Furthermore, governments have been using regulations with the aim of enhancing high quality services. These regulations have greatly reduced competition. The decline in competition has also resulted into reduced efficiency and quality of economic products.

The current trends that are also being witnessed globally are quite alarming. There is a global economic decline. The government is supposed to instigate measures that will stimulate economic development. If the current regulates are effective, then the prevailing economic hurdles could not be experienced.

The issue of over taxation of individuals with a huge financial base is a total failure (Ashcroft and Ashcroft 439). Increasing levels of unemployment attributed to retrenchment of workers by large companies is directly influenced by government regulations. Moreover, most people who are losing their jobs are the ones that governments want to uplift.

The dilemma seen in these scenarios is a major setback in the effectiveness of government regulations. In addition, the strict government regulation of businesses negatively affects people with limited capital. Such people cannot afford to meet all the requirements needed to obtain licensing form their respective governments. Such regulations have also affected economic growth of several poor communities.

As much as regulations were initially put in place with the aim of ensuring that economic development could be achieved substantially, there are myriads of limitations of these regulations. Most of the limitations are associated with the inability of the government to fully implement the actual regulative measures. This leaves loopholes that allow several other people to acquire wealth inappropriately at the expense of others (Ashcroft and Ashcroft 555).

Most of the measures instigated by the government in order to boost economic recovery or stimulation have been a failure due to lack of effective implementation mechanisms.

In some cases, the failures are attributed to lack of political will. The latter limits government policies on economic development (Carroll and Buchholtz 447). The laws governing economic processes have also resulted into massive failure of the economic regulatory processes. Some individuals take advantage due to the ambiguity of the laws in order to sabotage government regulations.

A free market that has no government regulations offers opportunities for participants in economic activities to offer the best in what they can do (Jennings 76). Unregulated market allows increased efficiency due to the availability of market forces such as competition.

Moreover, such a market ensures that the participants in the economic activities are responsible. If an individual participates in a business that is producing poor quality products and services, the market forces will work against that business entity. Such a business cannot survive in a competitive market.

Conclusion

Government regulations have proven to be effective in managing human economic activities and peaceful coexistence. Nevertheless, the current economic regulations are negatively affecting development and hence slowing down economic process in some economies. The weaknesses of government regulations have been clearly illustrated. It has been observed that a free market will allow economies to advance faster than in regulated economy.

Works Cited

Ashcroft, John and Janet, Ashcroft. Law for Business. New York, NY: Cengage Learning, 2010. Print.

Carroll, Archie and Ann, Buchholtz. Business & Society: Ethics & Stakeholder Management. New York, NY: Cengage Learning, 2009. Print.

Jennings, Marianne. Business: Its Legal, Ethical, and Global Environment. New York, NY: Cengage Learning, 2010. Print.

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The Role of Government Regulations in Human Economic Activities

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