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What Government regulation of the free market is required in order to do what?
Wiki User
∙ 7y ago
--Ensure competition and protect consumers. (Apex)
That's a trick question. The textbook answer, like the political answer, is usually "for the common good." But the educated person should decide whether that is true.
In reality, regulation tends to benefit those who push for regulation. Jean-Baptiste Colbert was the master of market regulation; his principle was that the wealth and the economy of a nation should serve the state. That didn't work out so well for France. In our own country, it's easy to observe that regulation over time has mainly served to increase the disparity between poor and wealthy, making the rich richer, as well as centralize national power. The free-market in this country had no regulation until the late 1800s and early 1900s. It was political sleight of hand that the unprecedented economic collapse which only happened after the advent of federal regulation (by the executive branch, not congress as the constitution allows) then justified further regulation.
So, government regulation of the market (which, regulated, is no longer free) is required in order to control the market. By definition, regulation is necessary to every form of capitalism except the free market.
Helmer Homenick
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