Government regulations in the business world have been attributed to some of the major economic changes in the world that have negatively affected the economy of the nation. These regulations are meant to ensure that the business world is not affected by changes in the economy and that a nation’s economy is stable. The government may intervene in the side of business owners, the side of the workers, or the side of consumers. Due to the conflicts that are constantly arising between union workers and different employers that can be attributed to low wages, poor working conditions, and oppressive expectations, the government acts as an arbitrator to address some of the arising conflicts between the two parties. From the late 1800s to the end of the 1930s, government regulations were increased to help the overall economy and the common workers.
In 1890, the government intervened by enacting the Sherman Antitrust law that was aimed at protecting small businesses from unfair competition from large corporations. During the early days, the government had refrained from regulating businesses where private business expanded into powerful corporations an aspect that negatively impacted small businesses as well as consumers. The Sherman Antitrust Law was aimed at restoring fair competition in the business environment between large and small businesses as well as breaking the monopolies created by the large corporations. This would also protect consumers from high prices that would be charged by some of the monopolistic corporations. Another government intervention was also experienced in 1906 when laws were passed that impacted the food and drug industry. These laws ensured that food and drugs were correctly labeled and that meat was also inspected before being sold in the market.
These laws were made to protect the consumer from eating contaminated foods as well as wrongly using some of the drugs available in the market. In 1913, the government also intervened in the banking sector by developing a new federal banking system that was aimed at regulating the money supply in the nation. This also enabled the government to control some of the banking activities. In 1930, the government implemented some of the largest interventions and changes in the business world in the aim of addressing the great depression that negatively affected the nation’s economy with the majority of American citizens remaining unemployed. During this time, some laws were made that allowed the government to intervene in the economy. Some of the interventions implemented were aimed at protecting employees from suffering the negative effects of the economy where companies would lay off all employees without suffering any consequences.
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However, there are some arguments disagreeing with this thesis by stating that increasing government interventions and regulation of businesses tended to hurt the overall economy and the common workers. This statement is false since most government interventions were implemented after there was a crisis in the business world. This means that most of these interventions and regulations were aimed at addressing some of the experienced problems. If this was not facilitated, different parties would suffer negative effects which include unfair competition in the business world. If these laws would not have been developed and enacted, companies and employees would be at a risk of suffering similar consequences. The government is also responsible for protecting all citizens of the nation from any harm or negative effects that would be as a result of the uncontrolled business environment.
Due to most of the government interventions and regulations that were developed during this time, the business environment is favorable to every investor willing to invest in different areas in the market. This has ensured a free market where competition is fair especially for small businesses. Most of the laws that have been implemented have also indicated as successful in achieving the desired effect. If the laws were unfair or discriminating, the laws would not have been passed since they are subjected to a legal process to assess their effectiveness. These laws have created a conducive environment and policies where this is beneficial to me working in any company since some of these regulations ensure that employees working in business firms are protected from unfair dismissal in certain situations.
References
- Rauchway, E. (2008). The Great Depression and the New Deal: A Very Short Introduction. Oxford: Oxford University Press. Retrieved from https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=218056&site=eds-live&scope=site
- Schultz, K. M. (2018). HIST: Volume 2: U.S. History since 1865. 5th ed. Belmont, Calif.: Wadsworth; Andover: Cengage Learning.
- Sinclair, U. 1906. Attack on the Meatpackers. The jungle. Urbana: University of Illinois Press. http://college.cengage.com/history/wadsworth_9781133309888/unprotected/ps/attack_meatpackers.htm
- Vaheesan, S. (2019). Progressives’ Secret Weapon. Washington Monthly, 51(1–3), 39–42. Retrieved from https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=133679932&site=eds-live&scope=site
