Governmental Regulations in Relation to the Free Market

An issue created with competing pressures is companies skipping product testing and regulation measures in order to create new products faster than their competitors can and have mass amounts of their products on the market. This could cause both quality and safety issues. When a company mass produces before fully testing the product, it could overlook key product issues and send said products to the market before they are deemed safe for market consumption. However, social pressures can help alleviate this problem, though some companies might skip regulations, if possible, they know that social outcry could ruin them and make sure not to create a completely terrible product.  

The logic for governmental regulations over businesses is consumer safety. With money as the main concern, businesses might not have the consumers in mind when creating the product. Governmental regulations prevent them from skipping product testing steps. However, a free market has proven to be the best way to promote innovation and an argument surrounding the issue is how much governmental regulation could be implemented before a free market is no longer free. Some governmental regulations make it too hard for a small business to expand.  

There is a debate about whether or not to increase capital gains taxes. The people that are for the increase believe that it’s an unfair way to make money and that it could be a form of tax evasion. The people against the increase believe that their money was earned fairly and that they contribute to the economy through the stock market, as the free market is the driver behind the United States’ successful economy.  

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