At the center of liberated communities and civilizations is the presence of an autonomous economy, constituting of businesses authorized to carry out their actions without any meddling from weighty policies and demands from legal authorities. We also have to consider that business cannot be carried in the absence of government regulations or we are bound to witness the repeat of collapse of businesses firms. The remaining question is whether regulations should be enforced on all activities that are related to commerce. This essay will discuss the question as well as the ramifications of whether laws should be enforced on all activities related to commerce.
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There is a need for business activities to remain free as there is a big disparity between an autonomous market and a regulation-less market. An autonomous market is that one which is controlled by market forces. Such a market is not controlled by external forces apart from that of demand and supply. As long as these forces of demand and supply are proper and legal. This market is very different from that is subject to the whims of a few individual (Libertarian Party, 2008).
Such a market s is only beneficial to a few individuals or also characterized by heavy regulations that restrict the free flow of goods and services. Such a scenario is often seen when the Government decides to employ regulations on certain sectors of businesses e.g. the involvement g government in the regulation of rental rates in New York (Benjamin & Lawrence, 2009).
However we cannot deny that regulation is important, but we are against too much or cumbersome regulations and policies that may otherwise hinder the flow of goods and services to the end consumer. In some states, regulations have been found to assist as property rates remain stable and thus affordable to tenants and there have also been cases where cumbersome regulations have forced landlords to reduce their rents to ridiculously low prices thus making them unable to remit their taxes. Not only was the landlord unable to remit their taxes, they were also unable to realize any profits on their investments. Such a scenario is what this paper describes as harmful laws to businesses (Green & Picot, 2001).
There are instances where too little laws or lack of proper laws and regulations have led to chaos in business. A good example was what we witnessed and led to the sub-prime mortgage crisis. Due to the greed of a few, banking malpractices were conducted by those in authority in banks and also by regulators, this led to a situation where people who could not afford home loans were awarded and later defaulted, leading to the collapse of mortgage lenders, banks among other institutions (Fredric & Stevens, 1991).
So how do we ensure that a market is able to serve the interests of both the buyer and consumer without breaking any laws or hindering the free flow of trade? One of the ways that we can ensure that laws are beneficial is through co-operation of all business stakeholders during the drafting of the law. For example, if the law regards the increase on taxation on a certain products or sector of business, the stakeholders within that sector should be informed and discussions among them held. In order to ascertain that everyone understand and their input noted. Laws and regulations should be drafted and enacted in order to be beneficial to trade and all those involved in it.
Benjamin P. & Lawrence J. (2009). Class war? What Americans really think about economic inequality. Chicago: University of Chicago Press.
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Fredric, C. & Stevens, S, A. (1991). Economic Opportunities in Freer U.S.Trade. New York: SUNY Press.
Green, B., & Picot, F. (2001). Dimensions of inequality in Business. London: University of British Columbia press.
Libertarian Party (2008), Smaller Government/ Lower Taxes/ More Freedom. Web.