The interstate Commerce Commission (created by the Commerce Act of 1887) focused on earlier state-based regulatory commissions. The Federal Trade Commission’s (established in 1914) primary mission was the promotion of consumer protection and the elimination of coercive monopoly. The Securities and Exchange Commission’s (SEC was established in 1934) primary role was to regulate the stock market and to prevent corporate abuses. Of the many different agencies, there is a varying degree of regulation depending on if it is at the state or federal level. When a lot of these agencies were coming to pass during the 30’s, lawmakers and citizens alike believed that an unregulated business could often lead to an unfair justice system and much inefficiency. As late as the 1960s and 70s, we (United States) were still amassing more agencies that regulated how businesses would act. The Environmental Protection Administration (EPA, established in 1970) and the Occupational Safety and Health Administration (OSHA, established in 1970) both were regulatory agencies that helped regulate businesses as far as environmental concerns and the overall concerns with working men and women. With the creation of these and many other different government regulatory agencies, laws became even stricter and businesses had a higher standard of living, so to speak to live up.
Naturally, like with anything that may be incorporated into our daily lives as a form of regulation, there are advantages and disadvantages. Some businesses may feel as though the advantages outweigh the disadvantages and believe that without these regulatory institutions, the world would run amuck and then there are those business people that feel the exact opposite. These people feel as though too much regulation by the government leads to a monarchy.
Within the different sectors of the business communities, there have been many complaints in regards to government regulations and the restrictive nature as to what the businesses are to abide by. The regulations that are in place some feel, impede upon small business and corporate profits, and are considered to be a waste of time and effort on the government to establish statutory requirements. Some companies would rather face the penalties associated with not following regulations which may cost more by following the regulations.
Some of the disadvantages that some business feels are noteworthy:
• Higher taxes on business
• Difficultness and time consuming in complying with rules and still would not have desired effect of protecting shareholders against fraud (Sarbanes-Oxley Act)
• Compromise profit to those companies that deal in the…