Government and Regulation of Companies

Governments have a responsibility to regulate companies that provide necessary services to citizens. Describe a specific situation in which a government might not have a responsibility to regulate a company that provides a necessary service to citizens. Discuss what you think determines whether or not governments have a responsibility to regulate companies that provide necessary services to citizens. In the United States, the government plays an integral role in maintaining order and protecting the lives of its citizens. Foundational documents, such as the Constitution and its Bill of Rights, help outline some of the responsibilities that the government owes to the people. One of among many include the duty to ensure the welfare of the people. In this sense, the government has taken the role as regulator of industries that provide necessary services to citizens. "Necessary services" may defined as services deemed crucial to the well-being and survival of citizens. This may include water, electricity, road safety, etc. In contrast, services, such as hair styling and dance lessons, would not be deemed necessary. Many of the necessary services have been heavily regulated by government as a way to ensure that most, if not all, people have access to the goods and services. If private companies were completely unregulated, only the upper crust of society would receive benefits. Indeed, most businesses are motivated by profit and will do what makes sense for them economically --even if that means causing harm to society in large or depriving services from those who really need them. The government plays a crucial role in making sure that these necessary services reach a wider population who would not otherwise afford them. The government also helps maintain the quality of necessary services. For example, the FDA promotes public health through supervision of food safety, prescriptions drugs, medical devices, etc. This government entity has the power to regulate US industries and keep them accountable to the public. Without the FDA, businesses would be producing goods and services at the most optimal cost in their view--often without taking into account the safety of their customers. When businesses do not abide by FDA rules, they are penalized and cannot continue to do business. In the couple of decades leading up to the financial crisis of 2008, government underwent a period of "deregulation"--especially in the finance industry. This occurs when government reduces its role and allows the industry greater freedom in its operations. An example of this was the 1999 Graham-Leach-Bailey act which took down barriers to competition between traditional banks, investment banks and insurance companies. Some pundits believe deregulation of the financial industry contributed to the crisis of recent years. Some people love to hate government for role that it takes in every day lives. They feel that it is oftentimes overreaching---violating personal freedom and preventing businesses from operating optimally. Indeed, advocacy groups and citizens play a crucial role in making sure government does its job to protect people while, at the same time, honoring individual rights as stated by the Constitution.