Government Intervention in Business Essay Example | Topics and Well Written Essays - 2000 words

Government encumbrance in Business - Essay ExampleThe government as well makes sure that the welf be of the plenty is put as priority at all times, (at least in theory). This becomes evident with Government own and Controlled Corporations, wherein some governments enter into the manufacturing or distribution of fast moving consumer goods to post a more emulous p sieve range for its people rather than the good produced by multinational corporations- this is very evident in third world countries especially in the fields of pharmaceutical corporations and basic commodities such as rice and oil.The government also subsidizes some semi government owned companies, or agencies which delivers basic commodities to the people. Example of which be in the fields of energy, transportation, food (rice). This is done, in order to avoid the monopoly of certain markets and private corporations which usually grade the market price of goods that sometimes are higher than what the lower class could afford.Disadvantages of government intervention in business can be felt if the government no longer regulates but prevents business from doing its lively functions. Too much government control suffocates the economy. This can sometimes be evident through the various taxes, tariffs and trade regulations that governments post in order to protect, propagate or hinder a certain market. An drill of which is that sometimes, As Stated the principle of laissez-faire, workers are most productive and a nations economy functions most expeditiously when people can pursue their own economic interest freely. However, the economy of the unify States is no where close to being a laissez-faire system. Based on studies, government spending and intervention in the economic sector has ballooned. The role of government has grown to a point where the benefits of government intervention are far outweighed by the negative effects on the economy as a whole(Ringer, 150). In the United States, one of th e major areas in which the government intervenes is in the agricultural sector of the economy. The government has three shipway it can intervene and help its producers. These ways include price policies, direct payments, and input policies. Price policies pass the largest effect on producers. Tariffs, quotas, and taxes are just a few examples of price policies. While these policies bring tax into the government, in the end they hurt consumers. Each of these policies raise the prices of both imported and native goods. They are designed to help stabilize prices and give the native producers a chance to compete with foreign goods. Under the doctrine of laissez-faire, the government would not interfere with prices and the native producers would be forced to lower their prices, giving the nations citizens a erupt deal in the market.The use of taxes is one of the governments favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by revenue enhancement is not. Some of the money it takes is used to fund other programs designed to protect consumers and to create jobs. Because of