Social Issues

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Business Brief The problem of state presence in socio-economic life has always been and will be the subject of heated discussions among economists, sociologists and political scientists. This issue is not only an ideological one, but also of significant importance for the state functioning. It is undisputable that the implementation of particular tasks by the state turns out indispensable for the functioning of society, however, in terms of market existence the underlying advantages, to be discussed below, are much less favorable. The classification of social regulations In the course of the recent 50 years the decrease of economic regulations is quite noticeable while the social ones present an increasing tendency and have been…show more content…
licenses, patents. State intervention at private markets generates costs, unpredictable consequences and is often more damaging than purposeful. The state frequently builds obstacles preventing economic growth. In many cases state regulations raise company functioning costs, slow down decision-making processes and limit access to resources necessary for the production of goods and the provision of services. Finally, it is the consumer who suffers unfavorable effects of such regulations. One of the negative side-effects, in terms of the state interference in the social sphere, are administration costs covered by the state budget and spent on running and supporting federal agencies. Another negative factor takes the form of bureaucratic inclinations presented by clerks in creating regulations the objective of which is often lost among inadequate requirements, the maze of rules difficult to overcome for consumers and entrepreneurs in order to meet due requirements. Additionally, entrepreneurs themselves are trying to extend the scope of regulations by seeking ways to use them to their own advantage. The costs to be covered by entrepreneurs refer to the necessary documentation, accounting and legal advice, employing consultants and experts, the purchase of necessary equipment, but also the cost of waiting time for indispensable
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