The Importance Of Government Regulations

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At face value it may appear government regulations to increase market efficiency and government regulations to decrease market efficiency contradict each other, but in fact exist in order to fulfill the government 's obligation to protect citizens. The regulations exist to protect private property rights, limit the amount of self-harm and harm to others in society and provide the basic needs for citizens in society. In this essay I will argue that the regulations are not a paradox, but are necessary in order to achieve a morally just economic system. After explaining the government’s moral responsibility and the necessity of regulations, I will explain how regulations to increase market efficiency offset market failures in order to protect …show more content…
When the manufacturing company does not pay for the safe removal of the waste, citizens are harmed. In this case, the government has an obligation to regulate this negative externality in order to protect its citizens. Without a regulation in place, these costs are passed off and businesses can increase profits. Citizens could then be exposed to invasions of personal property and detriments to health. Furthermore, negative externalities can also cause a reduction of individual property rights, as owners may have to pay for the costs of production of someone else as a result of the negative externality (Cowen). This encroaches on their right to control their own property, which government has a duty to protect. As one can see, regulations like these are not only necessary to protect citizens from harm but are within the government’s moral …show more content…
The hallmarks of capitalism include access to private property and the freedom to act in one’s self interest. Socialism has the interests of the collective group at heart and provides that the basic needs of citizens are met. The key to linking these two is government regulation. Regulations that increase market efficiencies fix the harm causes to citizens by market failures and regulations that decrease market efficiencies promote the wellbeing of members of society by providing basic needs to promote equality. As one can see, these regulations are not paradoxical, as they seem at face value. In reality, they work together to promote necessary outcomes for society in order to create the most moral economic

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