Government Regulation Essay

744 Words3 Pages
Government Regulation

Throughout history there have been many different opinions about government regulation. Some believe the government regulates business too much others feel that the government does not do enough. I believe the government is regulating business far too much and furthermore putting businesses out of business and causing many workers to lose jobs. In this paper I will point out the common problems dealing with government regulation. I will also focus on three major aspects of government regulation which include: 1) regulation interferes with production by halting innovation and discouraging risk taking, resulting in declining employment, 2) government over regulates by setting standards for every aspect of
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In all of the cases of 1970 the Congress chose to regulate instead of the alternatives; court penalties for polluters, tax penalties for employers with poor safety records, or government-funded information programs. " If the health and safety regulators were created in response to nonexistent crises, it is not surprising they have made little impact on morality rates."(Crickmer 1980) Sam Peltzman, University of Chicago economist, did a cost-benefit analysis of the drug regulations that followed the thalidomide tragedy in Europe. In his analysis he focused on the Food and Drug Administration (FDA) which is alike the older single-industry regulators and some of its problems are typical of most health and safety regulation. He found that the new drug laws were costing far more than the benefits achieved. In Britain more lives were being saved than in the U.S. due to the fewer restrictions on new drugs unlike the U.S. which have conservative policies towards new drugs. Regulation interferes with production and halts innovation and risk taking resulting in declining employment. This is to say, because of regulation costs, the businesses do not have enough money to invest in taking risks with new ideas and technology. This does not allow the company to expand and hire more workers. Regulation over regulates by setting standards for every aspect of manufacture
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