Question

Free market capitalism is an idealistic model for a society that operates without intervention. Government regulation isn’t necessary; the market is the solution to all ills and solves any problems. Competition, free trade and supply and demand will sort out any issues that arise (Skyler). The key features of free market capitalism include competition, private ownership, no price regulation; they are motivated by profit and minimal restriction by the government. Owning a business in a free market allows you to set your own prices and operate with the primary goal of making a profit. I think that having no government regulations can be a major fall back of the free market. The government has set important business regulations to protect us as employees and our rights. Government has also enacted laws to protect against fraud, such as the Sarbanes-Oxley Act. Although, some parts of the business world feel that government regulations are restrictive especially in the small business areas. The article I read explained that the government is also a friend of business, providing financial, advisory and other forms of service to the business community. It is also a friend of the public and the American consumer and acts in what it perceives as their best interests with protective laws, rules and regulations.

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Answer 1

The government role in today's economy is very important for the social welfare. As the economy face the problem of scarce resources which demands the intervention from the goverment. The government allocates the resources efficienctly and make sure that social disparity in terms of income and opportunity gives everyone a fair chance. The government specially helps small business and destitute population because they lack resources and opppopportu. If government doesn't intervene the disparity between rich and poor will keep on increasing at a very rapid rate. Therefore, government role helps in attaining efficiency with the help of lae rules and regulations.