Argumentative essay on GOVERNMENTS’ BAD EFFECTS TO THE BUSINESSES
Uploaded by DISABLED USER on Jul 25, 2012
GOVERNMENTS’ BAD EFFECTS TO THE BUSINESSES
Business is an organization which sells or buys goods and services to consumers. Most of businesses have private ownership and their aim is to earn profit and wealth. Non-profit and state-owned businesses are other types of businesses. Their aim is giving services to the consumers. In most capitalist economies, all businesses have a voice in the country until nowadays. Today, all around the world, governments are trying to show their power to businesses. For this reason, all types of businesses are suffering from governments. Hence, governments should decrease their political power over businesses.
First of all, because of governments, entrepreneurs create fewer new businesses. In most businesses, they have many start-up regulations to create their business. Their most common obstacle type is licenses. Anyone who wants to build an organization has to get some licenses. For example, according to Liebert (2008), in 2007, Texas decided that anyone who wants to be computer repairman, should get a private investigator license (par. 1). For getting private investigator license, people must complete three year apprenticeship with a licensed private investigator. Also foreign competition is a problem for entrepreneurs. Governments do not provide protection in small businesses for foreign competition. There aren’t any quotas for many goods for foreign companies. For example, in China, they have low priced workers. This makes their products low priced. On the other hand, domestic companies do not have those low priced workers. For this reason, domestic companies’ prices are higher than foreign companies’. Moreover, start-up companies can’t stand against their low priced products and go bankruptcy. Another problem for entrepreneurs is new regulations. Many of entrepreneurs are trying to start their first business. For this reason, they have a challenge to predict those new regulations’ impacts. If they could not predict properly, they have to solve many organizational problems. If not, company goes bankruptcy. Also governments regulate new taxes for companies. For example, if new health care law comes, this gives to company more economical charge. Companies make their economic plans before the new fiscal year. If new taxes come, they have to remake their economic plans. Without adjustment, they can’t hold a position in market.
Secondly, free market system is better than government monopolistic system. If we compare them with each other, government monopoly is non-responsive. In this system, governments do not care about their customers. If customers stop using their services,...