One of my recent weekly school assignments.
How do governments seek to cooperate with or work against business?
Modern leaders tend to work against business and vilify it. Adam Smith referred to the invisible hand, our modern leaders have referred to their boot (Soraghan,M., 2010). Government regulations have gotten just as twisted and corrupted as the scandals of big corporations they seek to watchdog .These regulations are the result of public policy which is the action plan of government to achieve a broad purpose affecting a substantial portion of a nations citizens (Lawrence & Weber, 2008, p.165)
Societies around the world vary in their friendliness to private concerns. Even most unfriendly ones grant certain rights to their citizens corporate ane private. These rights nearly always include Patents and copy rights. Patents are the exclusive right to market inventions(Encarta, 2011) and Copyrights are a form of intellectual property rights designed to reward creative and intellectual work(Satterlee & Robinson, 2008, p. 78-89).
Although most policies may be good intentioned they continue to war against the productivity of the private sector. Some examples of this include; tarrifs, taxes applied to certain imports; quotas which artificially manipulate the supply of items, and subsidies, or special privileges encouraging businesses to get started in otherwise unmarketable conditions (Satterlee & Robinson, 2008, p. 78-81) .
In United States alone Up to 12 Agencies operate 35 food safety laws, 541 clean air water and waste programs are administered by 29 separate agencies, and so on.(Beck, 2009, p 17 ). The misuse of the commerce clause has had wide impact in commerce. One of the better known of these travesties enforced has been the minimum wage. The minimum wage hurts the poor by cutting off the employment ladder. Raising the minimum wage destroys jobs, specifically entry level Many economist consistenly agree that this policy does not reach its stated objectives but causes great harm(Garfield 1996).
Not all government regulations war against business..In the late 19th century and early twentieth there were barrons of business who indeed did need to be checked. As time went on government became more of an instigator than an investigator.The bottom line is some regulation is essential, but the most efficient regulation is that which comes from the conscience. Governments greatest gift to businesses is to stand back and let the chips fall.
References
Beck, G.(2009) Arguing With Idiots: How to Stop Small Minds and Big Government. New York, NY .Simon Schuster Inc
Encarta dictionary. Retrieved February 7, 2011, from website:
http://encarta.msn.com/dictionary_1861724176/patent.html
Lawrence, A.T.,& Weber, J. (2008). Business & Society: Stakeholders, Ethics, and Public Policy.
New York: McGraw-Hill Companies Inc.
Satterlee, B. C., & Robinson, J. A. ( 2008). Global business from theory to practice.Roanokke, VA: Synergistics Inc.
Soraghan, M ( May 3, 2010, ). Tough-Talking Admin Officials Keep 'Boot on Neck' of BP, The New York Times.
Retrieved 8 Feb 2010 from
http://www.nytimes.com/gwire/2010/05/03/03greenwire-tough-talking-admin-officials-keep-boot-on-nec-20483.html
Garfield, R.(April 1996). Raising the Minimum Wage: The Illusion of Compassion Joint Economic Committee. Retrieved 8 Feb 2011
from http://www.house.gov/jec/cost-gov/regs/minimum/illusion.htm
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