The question do I think we have too much regulation in business is challenging
one. Tobi Amoo wrote in the NYU 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. a 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. a
When regulations go too far is when they affect the free market system. a The
free market is an economic system based on supply and demand with little or
no government control. Economists use indexes of economic freedom to
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 of economic growth,
development, and standards of living shows 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 jurisdictions including 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%20a
dvantage%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/
