Does government regulation have a place in private industry?

The question of whether government regulation has a place in our economy must be coupled with the subject of deregulation. The answer to both is yes, there is a place for both. The conditions which create the need for regulations are the passage of laws that identify the conditions which must be enforced by the various departments and agencies of the government. Details of how laws are enforced in many cases, if not all, are accomplished through regulations that are created by the departments and agencies.

Regulations have a proper place in society when it involves such things as our physical safety, the safety of our food, the safety of the toys that people purchase, and the safety of our medicines. Another area where the need exists is in the quality of the air we breathe. Some may feel that regulations generated by the EPA may have overstepped their bounds in creating such stringent requirements that it adds to the costs of doing business.

Medicine is one critical area where regulation is important. The medicines we use in our daily lives must be properly tested and monitored to validate the claims by manufacturers. It is important to have regulations to monitor the medical claims of manufacturing companies as the lives of those who use them may be affected. Medicines must be tested to assure they work as claimed by the industry and that any side effects or safety concerns are properly identified. If deregulation were in place for medicines, many questions and concerns would be raised about the safety of medicines placed in the market.

In various segments of business and society there is a need for both regulations and deregulation. On the other hand, many industries have worked well without government interference or regulation telling them what they must do. The key to whether regulations are necessary should be based upon sound facts, not opinions. Many times situations occur which cause some investigation to take place by government organizations to determine what happened and the actions that need to be taken to correct them. Government regulation is not always the answer. Government at all levels must consider the impact of adding regulations on industries which have typically not required them to exist and prosper.

News reports with each major piece of legislation enacted into law sometimes identifies the length of the regulation created to enforce it. Regulations are often needed for the protection of people and the environment, but they should not be of such length or complexity that makes it difficult for individuals or businesses to comprehend the content. Regulations that are generated should only be as long as necessary to document how the laws they address will be enforced. Citizens in general are law abiding, but when so many regulations are generated, it is difficult for them to grasp their content to avoid being in violation.

The major detriments of regulations and deregulation is the cost of generating them, the cost of enforcing them and the cost it adds to business to ensure they are never in violation. In these present economic times, government at all levels must look at the regulations that are in place, the cost involved in generating them, and the cost to enforce them, and decide if the cost is worth the results. This is definitely one area where government must analyze when deciding on what costs can be eliminated and what costs are worth the result achieved.

Overall, regulations can be beneficial, but only if they are not overused. Regulations bring essential structure and consistency, especially on issues which affect all Americans. Sometimes, the establishment of regulations or deregulation is the responsibility of the federal government as defined in the Constitution. Other times, the responsibilities rest with the states to provide such structure.

Deregulation may also be a good thing, but before it is decided upon and implemented, government must look at the private sector to analyze how it has worked prior to government regulation and how it is presently working. If it is determined that regulation is hampering the business community, hindering productivity and progress, and that little or no real benefit is derived from such regulations, they should be removed. Over-regulation of private industry is not conducive to productivity and economic growth.

Government at all levels has a responsibility to the people they serve to operate in an efficient manner. Regulations at any level of government costs money, as previously identified. All regulations need to be analyzed at all levels of government to determine their benefit. This involves not only the current ones in place but any new regulations being considered for adoption. Some may say that this is a daunting task, but given the economic times we are in, this type of government function needs to be examined more closely before implementation.

Making the decision to regulate an industry requires that it be made for the right reason and based on sound judgment. Problems in industries do not always require regulation to solve them. The consequences of regulation or deregulation must be considered for the specific industries which are being considered for the action. Regulation is not the answer to all our problems. Individuals must take responsibility and be accountable for their own actions. Government cannot solve every problem by regulation or deregulation. Once regulations are put in place, if they are not monitored and enforced, they are worthless. The financial crisis we are now in is a good example of what can happen when problems are ignored. Government should not be in the mode of controlling or dictating the actions of companies or individuals, except in areas previously mentioned. Creating big government, I feel, restricts the proper principles of supply and demand at work.

In summary, regulation is not all bad, but it must be used sparingly and only where the need actually exists. The imposing of regulations should not be based on the opinion of various individuals or groups, but the actual necessity for them. While political and economic opinion is often involved, the decision to regulate or not regulate should be based on actual data and the impact if regulation were not imposed. Regulation increases the cost of government, not only at the federal government level, but also at the state level. Several government programs or issues should be regulated as it is in the best interest of our citizens. In addition to the areas previously identified, there are other vital areas, such as anti-trust, national security, utilities, national defense, food, and disaster relief, that must be considered.

On the issue of deregulation, there are many industries, which have worked well without the intervention of government at either the state or federal level. One example is the cell phone industry. There is competition with prices and various programs or plans that benefit consumers. The cell phone industry is just one example, but to support the concept of deregulation one must understand how regulation hampers competition. When regulations are imposed, there are limits placed on industries. If the limits restrict the capability to be profitable, companies will fail. Regulation also hampers the prospect of new companies entering the picture and creating more competition. Regulations cost money and only the larger companies to some extent can afford to establish the controls necessary to assure that they do not violate the law. As our government seeks to build a healthier economy, it needs to reconsider the issues of regulation and deregulation in private industry.