Through the history of our economy the government has made changes by enforcing many regulations to have full control of the growth and power of the economy and to protect the consumers. Regulations can be divided into two different categories, Economic regulations and Social regulations. An Economic regulation covers sectors of the economy such as electricity, natural gas, communications, transportation, aviation, agriculture, and banking. These regulations usually include barriers to entry and exit, licensing and tariff laws, and the control of prices and wages. These regulations include acts such as the banking act o

Thierer, A (1999). The Regulation Home Page. [On-Line]. Available: http://www.regulation.org/.

Even though recent acts of deregulations have occurred and have been proven to be very successful, there are also benefits to regulations along with the disadvantages. Social regulations are most beneficial to the consumer, because it protects them from their employers to what they eat. With out these regulations corporations might take short cuts to save on money, while in turn they are harming their consumers with out us having any knowledge of it. It also protects us from our employers who might have been trying to take advantage of us, or tries to refuse us of the benefits we deserve. There are also economic regulations, which protect our economy by making sure corporations such as Microsoft, don’t become a monopoly. This allows our economy to stay balanced. This protects the consumers from higher prices, and also leaves them with other options.

From past experience we know that regulations can help the economy, but at the same time over regulating can cause the economy to hit a brick wall. Too many regulations can cause higher prices for consumers, corporations, and even the government. It also creates barriers to entry and exit, which will allow there to be less competition in the economy. Deregulating also has been proven to be a successful method of balancing the economy. It has worked for many of the major industries. As long as the regulations are kept to a minimum and are useful in protecting the consumer, there should be no problems.

The consumer also suffers from regulations; the more a corporation has to spend on the regulations the higher the prices of the product or service. According to the office of Federal Register every man, woman and child in America pays $2,800 in regulatory costs. This means that each American works 40 days out of the year just to pay for these regulations. Not only does it affect the cost of the products for Americans, but it also hurts them at work. When a business puts all of its resources to regulatory laws, it is using the resources less efficiently; it is forced to operate in a less productive, in a more costly way. Eventually this leads to the employees, which will deny them a higher standard of living. Many firms cannot afford to give their employees as much benefits, as they should receive due to the high regulatory costs.

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Approximate Word count = 1705
Approximate Pages = 7 (250 words per page double spaced)