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Economic Liberalism Essay Example

Economic Liberalism

Some organizations in the private sector use the government through its regulatory powers to tilt the market in a direction, which facilitates them making more profits than their competitors do. These entities, therefore, interfere with the government’s work making the regulations inefficient. Government regulations have put in industries such as airlines, communication, truckers, and railroads to make it very difficult for competitors to penetrate the market. Those firms already established in these industries enjoy a cartel status. National corporations to suppress any form of competition from local competitors use government regulation. Government regulation force health insurers to cover medical procedures and chiropractic care of less merit than they should. The above situations have explained how government regulations serve the purpose of a few groups with influential power instead of promoting and supporting the public interests. According to Friedman, the government regulation through its monetary policy interferes with the functioning of the free market system. The government through its fiscal policies such as increasing taxes to reduce the fiscal deficit would result in unemployment of many citizens.Deregulation leads to negative consequences such as the growing inequality, financial crises, and insecurity. In this segment, the essay will revolve around the negative consequences of deregulations according to Robert Kuttner. The consequences of deregulation arise from the deregulation of the labor markets, the deregulation of the mortgage markets, and deregulation of the financial markets. Deregulation of the labor market led to the erosion of the collective bargaining system. Many employers do not follow the labor unions requirements if they are not regulated by the government to do so. This will expose workers to poor working conditions and insecurity. If not regulated, employers will introduce wage and hour laws that only favor them. Deregulation will, therefore, increase inequality, as the majority of workers will be oppressed without proper work and hour laws to safeguard their interests.

preview essay on Economic Liberalism
  • Pages: 5 (1250 words)
  • Document Type: Essay
  • Subject: Macro & Microeconomics
  • Level: Masters
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