Business needs to be more regulated - Research Paper Example

Summary

Economic has provided us with two different kinds of businesses, first are those that are completely controlled by the private individuals and groups and have little government intervention and the second sector of businesses are those that are controlled by the government and…

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Subject: Miscellaneous
Type: Research Paper
Level: College
Pages: 4 (1000 words)
Downloads: 2
Author: upredovic

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other hand those in favor of strict government regulations argue that free markets are not as efficient as they may seem and due to their competitive nature, they involve in practices that impacts the society in a negative manner. Businesses need to be more regulated because businesses are inefficient, businesses are indulging in unethical practices, and there are monetary and physical losses of lack of strict regulation. Regulations governing businesses need to be increased and should be more stringent in nature because less regulation is resulting in inefficient use of resources which are already limited in supply.

Competition between businesses has increased and they are trying to find methods through which they can produce more in order to capture a higher proportion of market share. Due to this more products that are homogenous in nature are being produced and the number of goods and services being produced are more than the number of goods and services being demanded. Due to this a major percentage of the produced goods and services are being left unused and wasted. This wastage of goods and services is resulting in an increase in the inefficient ways of using resources that are already limited in number.

This inefficient use of resources proves that the model of free market is failing to meet its promise of efficient use of resources. According to a news article published in Liberation News, each year around 3 million individuals of the United States experience the state of homelessness and to cover these three million individuals, there were 18 million houses available and vacant (pslweb.org, 2013). This shows that due to competition, constructors have built more houses than the number of houses demanded in United States.

This even show that the resources used to make these houses will continue to be unused until there are enough people to occupy them. These resources could have been used in other projects. Another reason due to which more regulations

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