Assignment:
Some argue that government needs to increase its regulation of business for the good of society as a whole. Others believe that the marketplace is self-regulating and that government intervention through needless regulation places an unfair, costly burden on businesses in general and on small businesses in par¬ticular. What role do you believe government regulation should play to ensure ethical conduct by businesses? How do different political viewpoints potentially shape the answer to this question?
Guided Response: Respond to at least two of your fellow students' posts in a substantive manner. Some ways to do this include the following, though you may choose a different approach, providing your response is substantive:
Agree or disagree with your classmate's position. Defend your position by using information from the week's readings or examples from current events.
REPLY TO EDWARD:
Government regulations could have prevented the credit crisis in 2008 by way of not allowing federal agencies to make up their own rules and setting stricter guidelines for them to follow in the administrative procedure act. Since investors could not get much on their return from investing in treasury bills, they got connected with home mortgages and made money so easy that they were willing to give easy perquisites on home owners. "Lenders started adding risk to new mortgages by not requiring down payments and no proof of income. Instead of lending to responsible homeowners called prime mortgages they lending to less responsible homeowners called subprime mortgages" ("The Crisis of Credit Visualized", 2012). Investors should have known that if they let a person purchase a home with no steady income, down payment, or a credit check, the mortgage will more likely go into default within a few months.
Too little governmental regulation of business is a greater danger to the greater good and business because investors can greedy like they did in the mortgage crisis. Some may argue that too much government regulation can prevent the economy from growing, but it is needed in most cases to keep it going in the ruins like the credit crisis. Because of the credit crisis jobs had to let go a lot of workers due to the budget cuts, which made unemployment rates sky high. Stricter governmental regulation would have prevented job losses, and people losing their homes and business properties because of interest rates being excessively high.
References
The Crisis of Credit Visualized (Links to an external site.) Links to an external site. on Vimeo. (n.d.). Vimeo, Your Videos Belong Here. Retrieved October 19, 2012, from https://vimeo.com/3261363 (Links to an external site.)
REPLY TO KAREN:
Government has always played a major role in regulating policies and regulation be it the whole nation or for the company or for businesses. The government intervention have never been accepted by any business and businessman but the fact is that these intervention though is expensive to many business but it helps to promote all business and helps the businesses to function properly.
The government always regulates and maintains policies and regulates them so that the business function properly.
The intervention of government is good for the society in which the business operates and functions. The government may at times take politics in formulating these business policies which may hamper the society but the government always considers its responsibility in an appropriate manner so that the society prospers. Government intervention is not accepted by anyone and everyone wants to work freely with no intervention. In every society there are innumerable people and various business organization with different behavior and reactions, the government is an authority to control and deal with various aspects to occur and occurred. There should be an authority to control and manage all the matters. There should be an authority where complaints can be lodge or matters can be solved because dispute is a part an parcel in every society. These rules and regulation helps to solved various serious matters. The government intervention is never acceptable but as the coin has two sides the good and bad, this government intervention also has two faces, the good and bad (Judiciallearningcenter.org, 2017).
References:
Judiciallearningcenter.org. (2017). Why Do We Need Laws? | The Judicial Learning Center. [online] Available at: https://judiciallearningcenter.org/law-and-the-rule-of-law/ [Accessed 5 Dec. 2017].