Big business and regulation?

Question

Please, I don't wish for flame-wars, I only wish for heart-felt responses from people who believe in what they say. I respect your opinion, I hope you'll respect mine in return. Let's keep it nice, clean and respectful.

The subject of my question is both big business and regulation. I grew up in Denmark - one of the countries in the EU where government is largest. I grew up always admiring the US, because in the US you could succeed without government regulating you or taking away your money - in the US I could help poor people or disabled people because I wanted to - not because the government took away my money and spent it like it wanted.

Is saddens me, though, that many in today's America - on both sides - are so much against not regulating. We want to tax big business, tax the wealthy, tax the successful ones. Slowly America is turning into the Denmark that I wanted to leave because of just that.

I don't get it, nevertheless - why tax big business when it supplies you with goods and services you want and sometimes need? Goods and services in Denmark has always been very expensive, because of this exactly - the companies are passing along the bill to the costumers. Big business wouldn't be big, if it didn't do a good job in what it does; supplying us with what we want and need.

Americans are for freedom, I'm positive to that fact - but why do some of you want to limit some's freedoms, although they are entitled to their own wealth? I'm sure you have good, heartfelt reasons to this, and I'll really like to know them - because to me, they seem to be the opposite of what America stands for; I'm sure you disagree, why I want to hear your arguments. Otherwise, I'll never understand you.

I guess these basically are my questions: What did big business ever do to you, and why do you want to regulate people's and businesses' behaviours? I would appreciate it, though, if you tried to answer my question as a whole (if possible).

Answer 1

Very good question.The answers are really beyond this forum, but I'll take an abbreviated crack at it. First, businesses in America are not "protected" by the government IMHO. Just the opposite. In our society they are expected to be successful in spite of social and governmental interference.

In America, there is an abundance of "class envy" which is really the root of Socialism - hey I'm just as good as you, why do you have more than me. Further, a "victim mentality" runs rampant - boo hoo, I couldn't pass calculus because of the teacher, the book, the time of day I took the class, etc.. The combination of these two leads to looking for a target to raid to support a lifestyle that would be less than earned. So you look around and see businesses that are making it - creating jobs, paying taxes,etc. And say"let's grab part of that one". Typically, this takes the form of taxes, but it's also more subtle: who they can hire and promote, how they do business, even their ads.

I hope I addressed you question(s). I get pretty passionate about this, and there is no single answer.

Answer 2

Big business success is due to the government being there to protect them. In an anarchist society, the strong would rule, not the wealthy.

So think of it in a way as protection money. Without any stake in the system for the poor, they would rise up and overthrow the government.

Not only does big business benefit from the protection and laws a government provides, but it also benefits from other things taxes pay for: infrastructure is much more beneficial to the wealthy than to ghetto dwellers.

Another point: the bottom line of big business is to make money, not care about the after effects. Most big business would gladly pollute as much as needed or waste resources to keep their profits up. Government regulation is needed to stop this.

Some things just don't function well in a business sense that the government can actually do better. Think if there was no regulation on water or electricity. Every person in a town would have a different service provider for water and electricity, there would be lines and pipes everywhere and the service would be more expensive. This is called a natural monopoly.

There are many positive things that businesses provide (you covered most of them), but don't think there aren't negatives too. Big business is responsible for the spy ware and spam on your computer as well (anything for profits, right?)

There is no such thing as a free lunch. Economics 101.

Answer 3

I have to say that I appreciate your well thought questions.  

I agree with you in your analysis.  I have nothing against big businesses and people who are successful.  Like most people, I am against crony capitalism (i.e. when the government and big businesses share the same bed).

I think there is a dangerous thought that has emerged in America; that freedom can only happen when their is a semblance of economic equality along with equality of law.  I think many people who are concerned about a growing divide between the rich and poor are concerned that it will jeopardize freedom. Personally, I think it is a false concern, but I think some concern comes into play when businesses can use their economic clout to make the government work for them.  

As for regulating businesses, many people see it as a way to protect the consumer and the environment.  I don't agree with the government regulation to protect the consumer.  There are many state and local laws that protect you from fraud and misrepresentation.  Also it would be bad for business and allow a potential competitor to take over your market.  

I think there needs to be some environmental regulations since not everything is privatized.  Due to wind streams, pollution from factories does cross over to other states and water rights are a big issue, especially down stream.