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

government activity Intervention in Business - Essay object lessonThe government as well makes sure that the welf are of the people is put as priority at all times, (at least in theory). This becomes evident with Government Owned and Controlled Corporations, wherein some governments enter into the manufacturing or distribution of fast moving consumer goods to post a more competitive price range for its people or else 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 accepted companies, or agencies which delivers basic commodities to the people. Example of which are in the fields of energy, transportation, food (rice). This is done, in order to avoid the monopoly of trustworthy markets and private corporations which usually dictate the market price of goods that sometimes are higher than what the lower class could afford.Disadvantages of government hinderance in business can be felt if the government no longer regulates but prevents business from doing its vital functions. Too much government control suffocates the economy. This can sometimes be evident through the different taxes, tariffs and trade regulations that governments post in order to protect, propagate or hinder a certain market. An example of which is that sometimes, As Stated the doctrine of laissez-faire, workers are most productive and a nations economy functions most efficiently when people can pursue their own economic interest freely. However, the economy of the United States is no where close to being a laissez-faire system. Based on studies, government spending and incumbrance 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 set up on the economy as a whole(Ringer, 150). In the United States, one of the major areas in which the government intervenes is in the agricultural sector of the economy. The government has one-third ways it can intervene and help its producers. These ways include price policies, direct payments, and input policies. Price policies have the largest effect on producers. Tariffs, quotas, and taxes are merely a few examples of price policies. While these policies bring revenue into the government, in the end they hurt consumers. Each of these policies raise the prices of both imported and inherent 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 better deal in the market.The use of taxes is one of the governments favorite ways to make its presence cognize in the economy. While this met hod seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to shop other programs designed to protect consumers and to create jobs. Because of