Command And Control Vs Incentive System Essay

When differentiating the two concepts of "command and control" and the "incentive system, it is evident that the incentive system is much better in the long run in terms of regulating financial industries such as banks. The command and control system punishes offenders, which sounds terrific in retrospect, considering all of the scandalous activities that have gone down in the past. However, punishing them may do more harm than what rewarding them will do. By having the government set goals for financial industries, the command and control system certainly sways away from laissez-faire business policy and puts more power into the government and diminishes the free market, essentially not making it a free market anymore because the government can set
goals for your very own business. Command and control really takes away from traditionally being your own boss, because now you have to appeal to a higher entity in order for your business to flourish. Instead of punishing businesses and banks for not following guidelines, instead they should reward them for following guidelines because it is positive reinforcement. The more rewards they get, the more incentive there is to be genuine and have integrity. The command and control system sets goals for businesses that the government wants, and not the other way around. Essentially, giving people an incentive to be uncorrupt will surpass the need to be greedy, as they have been rewarded for their integrity as it is.
However, considering the loan and housing scandal during the recession, regular businesses should be maintained with an incentive system, whereas institutions such as banks are better off with a command and control system, because fear of punishment would prevent another recession. The fact of the matter is, whoever controls the banks, such as the Rothschild family and Goldman Sachs, pretty much control every bank internationally. Without a doubt there is some form of corruption occurring, whether it be loaning out money that simply exists on a computer and not physically or having overseas accounts. Briefly put, even if we did install a command and control system to regulate banks, it would be useless because governments and banks cooperate together, either secretly or in the open. The U.S. Federal Reserve is a private bank, not owned the U.S. It is essentially the central bank of the U.S. and isn’t even owned by the U.S. The reason I mention this is that it is reasonable to assume that the U.S. government and banks are working together to screw everyone out of their
money. It already happened once with the housing market crash, so a command and control system wouldn’t really do much to banks at all. The government is not going to punish their business partner, it’s just simple logic. There will only be political theatre if any corruption is exposed on anyone’s part. If anything, an incentive system would at least provide some form of motivation for the small business owners, but not banks. The banks are untouchable because our entire banking system is run by one of the wealthiest families in the world, the Rothschild family. If we lived in a less corrupt world, then likely an incentive system could work with banks. Realistically, I believe everyone should take their money out of their bank accounts, draining the banks. Then once the banks are drained and the power of the banks are diminished, people should start to loan money to other people, rather than always relying on the banks to profit off of loans. That profit should go back to the people, and back into the economy. Sadly, that will not happen anytime soon or even in our lifetime. Banks should adhere to a command and control system, although it may sound pretty useless due to all the secrets the general population has no awareness of. For regular businesses, there should be an incentive policy, as it promotes following the rules with a reward in mind. The banks will likely not follow the rules, and unless we stop bailing them out, there will always be a mutual business relationship between the government and the banks. As this movie highlighted, we are victims of our own ignorance. People are letting themselves get screwed over and are disillusioned by their government’s political theatre. The government hasn’t even done much to punish those responsible for this entire scandal. If command and control were implemented, it is questionable whether it will even be effective on banks. Overall, regulating our financial industries is a tough concept to approach, given all of the game-changing variables such as who to trust in our country, what punishments would be effective, who exactly would be rewarded, etc. Our banks our not our friends.