The article, "Government Regulations: Do They Help businesses?",by Marc Davis, discusses the impact of government regulations on businesses. Explaining the benefits, disadvantages, and intended role of government regulation, the article summarizes the controversial topic of government regulation's effect on businesses.

I do not believe we have too much government regulation on businesses. Without sufficient regulation, businesses, and their leaders, would have nothing stopping them from succumbing to greed and corruption. In a highly competitive capitalist environment, government regulation and intervention is the one thing stopping businesses from doing anything they can to make more profit. For example, due to the Environmental Protection Agency (EPA), businesses have been forced, or are willingly prioritizing, the limiting of their negative impact on the environment (Davis, 2021). Other types of regulations that benefit society include the Food and Drug Administration (FDA) and the Securities and Exchange Commission (SEC). The FDA helps society by ensuring the food and drug products companies sell/produce are safe to eat and use. While the SEC benefits society by regulating IPO's and stock trading to ensure companies are not defrauding the public (Davis, 2021).

However, there are industries that need less regulation. The food and drug industries, regulated by the FDA, are prime examples of industries that need less regulation, While the FDA does provide the public with some safety guarantees for products, there have been significant complaints from businesses that their regulations are overly impeding. Specifically, the FDA's needless delays of approval and demand for additional/more extensive tests, even after the drug/food has already been proved effective/safe, is deterring small businesses from entering the market and impeding the company's success in the industry (Davis, 2021). Furthermore, an industry that is in need of more government regulation would be the stock market. While the SEC does require full disclosure of information by companies to the public before they make their IPO, there are too many traders in the stock market with inside information on companies. Known as insider trading, this information gives traders an unfair advantage when choosing where to purchase stock from. Additional government regulation and intervention, possibly in the form of harsher punishments for the crime, should be implemented to limit this from happening.

Citations:

Davis, M. (2021, November 29). Government Regulations: Do They Help businesses? Investopedia. Retrieved December 15, 2021, from https://www.investopedia.com/articles/economics/11/government-regulations.asp

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Thanks!