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Ford at age 34 through five terms in Congress to secretary of defense to his current tenure as chairman and chief Government dominated big business 1 officer of Halliburton Co.
Regulation of business is seen as necessary to the welfare of the public to prevent exploitation by selfish business people.
Such a view would be hard to square with reality, with history both recent and distant. In reality, business often welcomes regulation and openly lobbies for it.
Business often doesn't want a free market for its goods and services and would rather have a government it can use. Compared to the wilderness of a free market, government regulation represents a warm hearth. Compared with the relentless ever-changing demands of the buyers, the stability and monopoly offered by government regulation is a far more forgiving boss.
As Murray Rothbard noted in condemning business-government partnerships, "We often fail to realize that the point of Big Government is precisely to set up such 'partnerships,' for the benefit of both government and business, or rather, of certain business firms and groups that happen to be in political favor.
The Case of Public Utilities One prime example is occurring in the nation's utility industry. The nation's public utilities are slowly being deregulated, a process now underway in twenty-four states. Prices will not be totally regulated and independent power companies will be able to compete with utilities.
The coming deregulation has spurred investment and innovation already in the industry. Of course, some industry players are better situated than others.
Securities analysts suddenly have to look much harder at the ability of a once-staid utility company to meet and maintain its dividend. One market observer said that you could divide the utility companies into two camps; those that have cut their dividend and those that are going to cut their dividend.
Competitive markets will mean significant investments for utilities to meet the rigor of future competition. Certainly, even in this state, the market will hardly be what Misesians would call free. Moreover, the utilities are surrendering control over their sprawling multistate network of high-voltage lines.
These will be owned by new nonprofit operators charged with the responsibility of ensuring fair access to the grid--definitely not the stuff of free markets. Yet many in the utility industry are scared to death of deregulation, a process now only in its infancy and one that free market advocates can only hope continues.
The efforts of utility companies to halt deregulation were recently exposed in a Washington Post article by John Mintz titled "Utilities Secretly Lobbied Congress.
Mintz reports that energy deregulation " On the other side of the debate, in favor of deregulation, are large manufacturers looking for cheaper sources of power and independent power companies such as Enron that want the opportunity to compete with the utilities.
Why would utility companies want regulation? The fact that these companies decided to lobby Congress through two front organizations is evidence that they would like to hide the fact that regulation provides them with a monopoly privilege.
They are protected from the threat of new entrants.
Regulated life also provides a steady diet of rate increases over time. The joke used to be that the utility industry was the only one where you could boost your profits by buying new furniture for your office. The problem is that that we do not have a free market utility industry to make any comparison, and hence such a point has no meaning.Is Government Dominated by Big Business Essay Sample.
Good expalnation of the political lobby of Washington.
Great Paper Is Government Dominated by Business Special interest groups have dominated government since the advent of America’s political system.
That, according to reports, would allow the federal government to have a balanced budget in 10 years.
At the same time, spending on the departments of Defense, Homeland Security, and Veterans. The saga of Standard Oil ranks as one of the most dramatic episodes in the history of the U.S.
economy. It occurred at a time when the country was undergoing its rapid transformation from a mainly agricultural society to the greatest industrial powerhouse the world has ever known. Dec 30, · Is Government Dominated by Big Business Is Government Dominated by Business Special interest groups have dominated government since the advent of America's political system.
Special interest groups or lobbies are collections of individuals who. Is Government Dominated by Big Business Essay. The point that disgusts many people Is that more often hen not money overpowers the right decision; that Is why Big Business Is a problem - Is Government Dominated by Big Business Essay introduction.
The richer the companies and organizations, the better chance they have to persuade the government officials. As Murray Rothbard noted in condemning business-government partnerships, "We often fail to realize that the point of Big Government is precisely to set up such 'partnerships,' for the benefit of both government and business, or rather, of certain business firms and groups that happen to .