The current level of government regulation of business is detrimental Term Paper

The current level of government regulation of business is detrimental to our economy - Term Paper Example It was the Industrial Revolution in the 19th century that was the start of modern business organizations. The principles of business have been the same over the years - the availability of land, labor, capital and management. Among the factors of the production, capital has become the most important as the other factors are dependent on it. The capital and the management lead to the concept of Capitalism. Capitalism is the process of earning a living with the use of capital. The era of the capitalism is prominent in the growth of business over the years. It has been present since medieval times. In earlier stages of human history, people were nomadic in nature and they relied on agriculture. However, even at that time, the society consisted of businessmen of various classes and there were signs of business activity. Industrial Revolution, of the nineteenth century, aided the growth of the private business bodies and this helped in the development of economy. In some cases like that i n China and Russia, the capitalism was state controlled and the Government controlled the economic activities of the state. Throughout the stages of the economic development, the governing bodies of the society have maintained some sort of control over the growth of business. In early days, kings and the chiefs had the governing power. The economic activities and business needed their permission. Then came democracy, here the onus fell on governments of the respective countries to control the business activities. In some cases, governmental control has aided the development of the business, while on the other hand it has blocked the natural path of development. As the governmental system strengthened, judicial system developed to further defend the interest of businesses and their stake holders. This helped in the formation of rules and regulations, which were to be followed by the business organizations. The setting up of the rules and regulations paved the way for a more disciplined approach to the setting up of the business. However, there have been complaints that too many rules and regulations gover n business organizations, which is detrimental to the natural growth of the business organizations. Indirectly, this also affects the rate of growth at which the economies grow. Thus, it can be said that the current level of government regulation of business is detrimental to our economy. (Graf, 2003: 1-8) The concept of Regulation The regulation of the business activities has been a problem from the beginning of time. These were the times when the leaders of the tribe or the kings controlled the people and business activity of their dominion. The next stage was of colonialism, the kings of the countries regulated the activities of the business. In the case of USA, the regulation of the business activities started with the advent of colonialism. The Europeans descended the USA and set up colonies in the region. The Government of the respective countries controlled the colonies. The business activities followed the trajectory of that in Europe where guilds were formed to control the business activities. These were formed to protect the people from exploitation of the authority. There were two different types of guilds in the medieval age - merchant guild and the craft guild. The merchant guild was

American history of business 1865-present Research Paper

American history of business 1865-present - Research Paper Example Each American year in the historical era is documented besides its prevailing economic, social or political phenomenon, thus these classifications are done in terms of units. The units are mainly clusters of years, each of which major transitions were taking place in all realms. However, each cluster of years since 1865 was marked by a contentious issue that required immediate response from the concerned groups (Olson, 2007). These units are investigated in regards to the following divisions: unit 1 (1865-1876) Industrial Revolution, railroads, development of corporations, finance, communication, labor, and introduction of trusts. Unit two (1877-1920) explains about the Impact of Roosevelt's "New Nationalism" vs. Wilson's "New Freedom" and welfare capitalism. Unit 3 (1921-1945) views Technology, consumer spending, introduction of the automobile, and the Great Depression. Unit 4 (1946-1976) looks into Postwar prosperity, organized labor, and the Taft-Hartley Act, while unit 5 (1976-pr esent) is regarded in terms of NAFTA, computer age, and the economic downturn in American business. The major players in regards to the transformations that were taking place in America included the political leaders, immigrated people from other continents, laborers and activists dominating various economic, political, and social realms (Olson, 2007). The discussion in this paper is aimed at the establishment of the history of American business since 1865 and up to the present date. The various units will be carefully examined to enhance the comprehension of the business issue in the aforementioned years. Unit 1 (1865-1876) In unit one, business in America consisted of Industrial Revolution, railroads, development of corporations, finance, communication, labor, and introduction of trusts. There was rapid development in America in this period, rendering America become a leading industrial continent in the global context. The industrial revolution was facilitated by the abundance of natural resources that were exploited to yield useful industrial products. Adequate land was also available that could be utilized in the production of agricultural raw materials, serving as industrial raw materials in the set up industries. The prior and prevailing construction of railroads provided an ample ground for the required industrialization, since the industrialists could penetrate to the deepest parts in search for industrial materials. Availability of adequate labor acted as a long-term rationale to the fast-paced industrial revolution that took place in America. The period was also significant in seeing the Asians and Mexicans rapidly immigrate to America in search for labor, thus the industrializing America gained a favorable ground for the required activities. The ideal presence of rivers that were navigable provided a ground for the cheap extraction of industrial energy as other related items of requirement. The Americans had also enough capital, which served as the major contributing factor to the aspect of industrialization (Ripper, 2008). The development of railroads was rapidly taking place in this period in a bid to meet the immediate needs for transport and industrial increment. The more the railroads continued to expand, the more the industrial expansions took place in America. The opening of these railroads in all places in America saw the creation of more farms, markets, towns in areas that