In laymen’s terms, government regulations refer to the laws that dictate how a business can and cannot operate. Though there are a lot of arguments for these regulations, there are also some arguments against them. Today, we are going to discuss four arguments against government regulations.
Some people argue that regulations are nothing more than a hidden tax on the market. According to economists, a tax creates a wedge between supply and demand on a product. You pay a higher price for something, and the producer makes less money on it.
What are the differences between a tax and a regulatory cost? The government is making some money on the product and the taxes remain hidden. The competition lessens. Less competition means the government can mark the prices up higher. That creates more of a monopoly. It also increases the money companies have to spend on the permits they use to help bring certain products in and out of the state line. A great example of this is south carolina oversize permits.
Some vehicles exceed their allotted weight when driving into some states, including South Carolina. They need to pay for oversized permits to keep things legal. You can find out more about these legal issues with oversized permits at heavyhaul.com. The more they have to spend on the permits and the regulations, the less money the company nets as profits. The less competition in the market, the more control the government has over the products we produce.
There is a common misconception the businesses have their own agenda. That might true with a corporation, but not every business feels that way. There are a lot of companies that want regulations. That way they can dictate the terms for their business. They can run to the government for help, but there is a downside. The government retains control over what happens with the company. The company’s freedom is somewhat limited when they ask for help. This also affects how people are paid and other compensation they might receive.
Some argue that government regulations are kind of null and void since the market is self-regulating. Some pose the question about protecting the consumer. Who is going to protect the consumer and business when they are at the mercy of someone else? Is there any room for government regulation within the minds of those who say self-regulation is the way to go?
Products and services fall into two categories: What sells and does not sell. Products that people want are going to continue to sell. The others are going to fall by the wayside. New entrepreneurship is growing daily. More people are looking to do their own thing. The market and the business model are going to be protected as long as this continues to happen. The business model is going to continue to thrive as long as people continue to raise their voices and speak on something they are against.