Rationale for Government Regulations on Businesses

QUESTION

Regulation of Business

• Explain the rationale for government regulations on businesses in your own words.
• Identify a federal or state regulation that you support or oppose.
• Explain your support or opposition to the regulation

ANSWER

Rationale for Government Regulations on Businesses

The government regulates the operations of businesses for various reasons. First, the government aims at protecting the needs of its citizens, i.e. to uphold the welfare of the public and safeguarding its safety. The government also regulates businesses to protect industrialists, i.e. to protect businesses from criminal activities and fraudsters. The government also regulates business operations to ensure that income is generated into the economy of the country.

An example of a federal regulation imposed on businesses is The Clean Water Act of 1972. This regulation, by the United States Environmental Protection Agency safeguards the US waterways from harmful waste disposal by industries in the manufacturing section. The regulation ensures that the citizens of the US enjoy a clean and safe environment, free from waterborne diseases and hazardous wastes. It has enabled the navigable waterways of the US one of the cleanest ones in the world. It has also protected the health of US citizens and marine life, in the waterways of the US.