The question do I think we have too much regulation in business is
challenging one. Tobi Amoo wrote in theNYU Journal of Law &
Business“regulations put in place by the government are intended to ensure
accountability from businesses and provide standards for them to adhere to.
Compliance is key for businesses to avoid sanctions and remain in operation.
These include obligations on registration, reporting, product standards,
safety, wages and pension, workplace environment, capitalization, tariffs,
antitrust, data privacy and levies. These rules are put in place to protect
consumers, employees, investors, and the general public” (Amoo, 2018).
The reason for increased regulations, are a direct result of industries failing to
comply to the rules and/or regulate themselves. History is filled with
examples of corporations who demonstrated their social irresponsibility due
to their priorities of making a profit. Companies like ENRON, WorldCom,
and Lehman Brothers.
When regulations go too far is when they affect the free market system. The
free market is an economic system based on supply and demand with little or
no government control. Economists useindexes of economic freedomto
measure items such as the security of property rights, the burden of
regulation, and openness of financial markets, among many other items.
Empirical analysis comparing these indexes to various measures ofeconomic
growth, development, andstandards of livingshows overwhelming evidence
of a relationship between free markets and material wellbeing across
countries (backgrounds et al., n.d.).
Some government regulations disrupt the free-market system and stifles
innovation forcing business to set up in other areas, which results in loss of
jobs and tax revenue. For example,Uber, a ridesharing transport company,
has been compelled to pull out of several jurisdictionsincluding Denmark,
Hungary, France and the Netherlands, due to regulatory restraints (Amoo,
2018).
I tend to agree with The Regulatory Transparency Project published in 2017,
regulations that benefit society should be evidence-based regulations that
respect the fundamental role of free-market competition can provide vital
public benefits – such as protecting the environment, public health and
safety, civil rights, consumers, and investors (Government Regulation: The
Good, the Bad, & the Ugly | Regulatory Transparency Project, 2017).
Sharon
Amoo, T. (2018, October 22).Business Regulation: How Much Is Too
Much?Nyujlb. https://www.nyujlb.org/single-post/2018/10/22/Business-
Regulation-How-Much-Is-Too-Much#:~:text=Aggressive%20regulation
%20may%20confer%20undue%20advantage%20to%20larger
backgrounds, F. B. F. L. F. T. I. contributors come from a range of, Thous,
O. 20+ Y. T. H. B., Writers, S. of E., & Team, editors who have contributed
L. about our editorial policies T. I. (n.d.).Free Market Definition.
Investopedia.https://www.investopedia.com/terms/f/freemarket.asp#:~:text=
The%20free%20market%20is%20an%20economic%20system%20based
Government Regulation: The Good, The Bad, & The Ugly | Regulatory
Transparency Project. (2017). Regulatory Transparency Project.
https://regproject.org/paper/government-regulation-the-good-the-bad-the-
ugly/
