Preview

Government Intervention

Better Essays
Open Document
Open Document
1150 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Government Intervention
It is not only unnecessary for the government to intervene to maintain a free market, it is extremely wrong. Intervention by any outside party in corporate matters is inappropriate and basically contradicts the meaning of a free market.

There are some positive effects government intervention could produce. These pros are, in fact, few, and questionable, at that. Take for instance, the situation with Microsoft. The government is sticking its nose in where it doesn't belong. Let's try and get passed that point for a moment and examine the good that could come out of government intervention.

One possible pro to this intervention is that it would most likely create a more equal market (not "fair market.") The term "fair market" is like an oxymoron in this case because basically the government is saying, "Hi, we're the United States government and we're sorry but we cannot let you continue to run your business. Although you have spent your life working to improve and simplify the computer industry, we simply feel you have made too much money." How is this in any way fair? In some people's eyes it is for the best of the economy and the computer industry, but it is definitely not fair. For the government to break down Microsoft, a multi-billion dollar company would be ridiculous. True, maybe the market would be more equal. No more mammoth company, just moderately sized companies. This could be a pro. But who is the government to decide that a company is too large? And if so where is the line drawnone billiontwo billiontwenty billion?

One other possible pro to government intervention in the Microsoft case would be that smaller, newer companies would have a "fairer" shot at being recognized. Once again, the term "fair" is open to discussion. What is considered to be fair to some can be completely unfair to others. Smaller computer companies would undoubtedly have a better chance at becoming popular. However, people are free to do whatever they want.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    This file of ECON 545 Week 3 Discussion Question 2 Anti-Trust Policy and Microsoft consists of: Is Microsoft a monopoly? In what ways could it be consi...…

    • 414 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    see if Microsoft was trying to create a monopoly of the computer software market. They…

    • 500 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    There are a few reasons why governments may decide to intervene in the economy. The decisions governments take are called government policies and these may have a positive or negative effect on business operations. Governments put these policies in place with an overall aim to achieve an increase in income, encourage economic growth within the country and control aggregate demand. For example, governments may decide to take over manufacturing in order to maximise outputs or put stricter control and rules on protecting the environment. Other policies they can put in place can be to do with lowering employment within an economy by reducing benefits to…

    • 3033 Words
    • 13 Pages
    Best Essays
  • Good Essays

    Bill Gates built his company through aggression and determination, often buying up small companies whose ideas he liked. For those companies who he could not buy, he would create similar products to theirs, selling them for less and marketing them strategically. The tactics he used to create his Microsoft Empire were all legal, yet in 1998 Microsoft found themselves facing a lawsuit against the U.S. Justice Department in violation of the Antitrust Laws [ (Wright, 1998) ]. Antitrust Laws were created in the late 1800’s, early 1900’s as legislation to prevent unlawful monopolies, to promote competition, and to encourage the production of quality goods at reasonable prices, protecting the public from monopolized markets that take advantage of their consumers [ (Hartman, 1997) ].…

    • 918 Words
    • 4 Pages
    Good Essays
  • Good Essays

    When it comes to corporate business and the common business the government needs to intervene to make the playing field fair for everyone involved. When competitors seek out the next get big money merger or expansion, this is where I believe the government steps in. with the government putting in place regulation such as fiscal policy, and monetary policy, the grounds of society become equal to the groups of power that have greater economic influence.…

    • 590 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    There are many ways the the federal and state governments can regulate businesses in a very benificial way. For example, governements can create competition between two powerful companies in an industry thus preventing monopolies. Anouther very benificial role that governments play in businesses has to do with the customer. Fedural agancies (such as the FDA), are put in place to manage or regulate the food, product, or drug given to the consumer. This FDA aganciy will do its job well considering it pourpose in businesses is to control substance standards and ingrediants.…

    • 92 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    A company should not be allowed to drive out all the other competitors and be a monopoly. They should work their way to the top just like the other companies have to. They should have to be creative and innovative to gain customers instead of driving out the competition using illegal means. The United…

    • 1085 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Risks associated with the initiative and financial effects they may have on the Microsoft Corporation. One risk is losing valuable components of the software Microsoft develops, in order to comply with the legal rules and regulations. This may cause Microsoft to pull some products out of circulation from countries that have different laws, which can drastically drop Microsoft’s profit margin. Trying to follow the laws and regulations can also cause a delay in development leading to a loss in revenue. Microsoft was the first software company to catapult itself to the for-front of the technology era. Now Microsoft has to work twice as hard to stay on top of the wave of the technology field, and this means following all the legal regulations set by all of the players in this field, including countries that do not always play nice.…

    • 309 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    I like your idea about giving government regulations; I had not thought about this. Since I agree with you that both sides have a point I think this is most definitely a great idea and possibility. With that being said, my one comment is that some of the larger firms they are now competing with, like Walmart, should also be given regulations. If only one is being watched that it gives companies like Walmart the chance to become a monopoly even quicker. So, unless we, as supporters of the US economy, are ready to regulate all of the potential monopolies in the same regard, the plan would only cause the thing that is trying to be avoided. For this reason, I think there may be a better solution to the problem at…

    • 133 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    One of the familiar monopoly breakups in recent history was the Bell System divestiture in 1974. Under this filing "Bell System" agreed to divest its local exchange service operating companies, in return for a chance to go into the computer business, AT&T Computer Systems.3 Now this action by the Department of Justice not only produced competition in the market, but has since forced a surge in producing many technologies we enjoy today. Some of our most advanced companies such as Verizon were not only birthed but benefited from such an action. This is a firm example we can look back on and see the fruits of good economic competition, even if it is government regulated.…

    • 400 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    However, if there was no regulation, businesses would be uncontrollable. For example, Apple and Microsoft, the two biggest names in the computer industry, have control over a larger sector of the market than any other company combined. Because these two corporations control the majority of the market in nearly all of its markets, there is an overwhelming social pressure…

    • 944 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The main purpose for a government to intervene within a market is to improve and strengthen the performance and stability of an economy by hopefully correcting any market failure through enhancing the allocation of resources and striving towards a progression in economic and social welfare by balancing the distribution of income and wealth. Not all intervention can be beneficial however; government failure occurs when this method causes a situation to worsen usually by affecting the efficiency of which resources are allocated creating several unintended effects which can create negative externalities. The main contributor to government failure is the decision to raise taxes typically on de-merits goods which can potentially lead to an increase in the amount of companies attempting to avoid tax which stimulates trade within unauthorised markets affecting the demand for the good and overall economic welfare. In addition to this, newly enforced austerity measures can lead to poor incentives for people to work causing productivity levels to fall increasing the likelihood of unemployment. Teamed with higher rates of income tax, it can produce a strong disincentive to work longer hours or take better paid jobs distorting the balance of the economy. One prime example of government failure is the fishery policy, it was assigned with the upmost intentions to help combat the imminent problem of overfishing however since its introduction has failed to achieve its initial objectives and has actually caused much deeper problem for the European fishing industry. The current EU quotas in place do not work well in restoring fish stocks due to the continuous dumping of discarded fish into the oceans, which not only produces unnecessary waste but lowers the volume of fish available for fishermen to catch which is a major problem across European waters due to fleet overcapacity. Overfishing is an example of where there has been a failure to implement agreed fishing quotas forcing…

    • 1054 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    This is a very interesting question. I would hope that the policies that are in place by the government would help not only the producers but in the long run would also help the consumers. The government has a responsibility to ensure that businesses will get that competitive advantage in the global business world. That said, if governments place were to place too much of its interest in businesses, the consumers would definitely suffer immensely. Historically, the United States has made many mistakes where we have protected the producers and companies and have developed many policies to ensure American companies do not fail. The book discusses the steel industry and how government placed an Ad Valorem Tariff on steel. It talked about how we wanted to protect domestic steel producers and how government had too many policies in place. That eventually was counterproductive and it raised the cost of production. This then caused the output to fail miserably and before we know it, we eliminated that tariff within two years. Can we learn from this mistake in the future? Sure we can. But you need the right people for the job. We need to make sure better policy-making decisions are made and that local content requirement is occurring.…

    • 393 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Government Regulation

    • 745 Words
    • 3 Pages

    groups also aid in creating panic by focusing on the bad and not the possible…

    • 745 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Government Intervention

    • 830 Words
    • 4 Pages

    their own plan. This saved them a great amount of time with out the usual…

    • 830 Words
    • 4 Pages
    Good Essays

Related Topics