61. I agree with the statement insofar as government systems of taxation and
) K q) X" ?: T$ P S+ Kregulation are, in general, a great burden to business, and I agree that government
5 i0 z! p; C3 ?/ D) V7 x9 m% M2 ^# Y6 Gconstraints are needed to prevent serious harms that would result if business were left , ^8 w2 v1 f! v% t
free in the singular pursuit of profit. However, I think the speaker states the obvious and + K: r0 i# g+ E
begs the more relevant question., H1 s" g: G, p. G* o
Is government "at best" a "tremendous burden" on business, as the speaker claims? ; E; l+ Y% t! w# V/ H: Q" `
l think one would be hard-pressed to find any small business owner or corporate CEO
* \+ H* d8 |0 r6 }/ _) Kwho would disagree. Businesses today are mired in the burdens that government has , h& t3 \& h2 Z/ `' L3 P
imposed on them: consumer and environmental protection laws, the double-tiered tax 1 \( r& M4 X: G9 n$ X- R0 [$ `' w
structure for C-corporations, federal and state securities regulations, affirmative action 8 `4 J/ A6 h& R' h
requirements, anti-trust laws, and so on. in focusing solely on these burdens, one might
8 f$ L; E5 }" ?& t+ ^well adopt a strict laissez faire view that if business is left free to pursue profit the so-0 L$ z3 ]0 _4 V
called invisible hand of competition will guide it to produce the greatest social benefit,
0 Y' D. c7 `. r3 j; N _and therefore that the proper nexus between business and government is no nexus at all.
4 ]1 Z$ o" z# J! ~7 p- I Is government, nevertheless, a "necessary" burden on business, as the speaker also , ^4 P# M- q8 S
claims? Yes. Laissez faire is an extreme view that fails to consider the serious harms
7 T5 v0 m# N, C* hthat business would do—to other businesses and to the society—if left to its own
' O& n0 _6 Y$ I0 z j& l( z$ {devices. And the harms may very well exceed the benefits. In fact, history has shown 6 |; r7 s E5 k& j
that left entirely to themselves, corporations can be expected not only to harm the
1 j, a, k% O2 D% ]society by making unsafe products and by polluting the environment, but also to cheat
( k5 `, s# r- rone another, exploit workers, and fix prices -all for profit's sake. Thus, I agree that
6 l% ^: W7 s6 a5 w6 y/ @ ]1 qgovernment constraints on business are necessary burdens.0 K* J+ w, U- W
Ideally, the government should regulate against harmful practices but not interfere 6 m. |( H% s6 W# M# Q/ ]" m5 M7 J
with the beneficial ones. But achieving this balance is not a simple matter. For instance, / j; M3 ]+ c# t, c# P8 m$ M# E/ [
I know of a business that was forced by government regulation of toxic effluents to
6 C* d/ i. X6 tspend over $120,000 to clean up an area outside of its plant where employees had % U$ m, W7 ]; o ^" `
regularly washed their hands. The 'toxin' in this case was nothing more than
9 |; X9 P/ d8 A: V( N5 M3 Rbiodegradable soap. This example suggests that perhaps the real issue here is not / O* y6 D: ^& Z) A a, V, N
whether government is a necessary burden on business—for it clearly is—but rather
" G5 q* q5 q7 @- b9 Fhow best to ensure that its burdens don't outweigh its benefits.
* } f- ?' P6 q* z( Y/ ~ In sum, the speaker's two assertions are palpable ones that are amply supported by 1 A6 K4 w) W: @* q1 H$ s
the evidence. The more intriguing question is how to strike the best balance. |