Government Intervention Essay Example

one that revolved around manufacturing, investment mergers, and banking finance. Steiner and Steiner (2000, 85) have recognized this change. As Todd (1986-87, 7) points out, these business activities resulted in several influential business owners and corporations gaining extensive control over industries and markets. For more information on the role of extinction in evolution, please visit role of extinction in evolution. John D.

Rockefeller was one of the powerful elites who made their mark. With just a $4,000.00 investment in a petroleum production refinery in 1863, he transformed it into the Standard Oil Company. This soon became a giant of the industry, with over 90% control of the market by the 1880s. It even attained monopoly status then (Steiner and Steiner, 2000, 69-71). John D. Rockefeller possessed excellent business judgement and essential qualities for managing a successful venture. Still, he felt it needed "rationalizing" to prevent its tendency towards destructive competition (Steiner and Steiner, 2000, 70).

Rockefeller resorted to monopolizing through unethical tactics as a solution to the problem. This involved colluding with growing railroads via secret agreements, rebates, bribes, and even coercive measures against allies and adversaries. Such practices were deemed necessary for success (Steiner and Steiner, 2000, 71-72). The nation was pervaded by widespread discontentment and anger as the undemocratic monopoly power of Standard Oil clashed with social norms valuing competition and individual rights. The Supreme Court, under the Sherman Antitrust Act of 1890, ordered the company to be dismantled in 1911, asserting that its monopolistic influence constituted an unjustifiable hindrance to trade that transgressed the "standard of reason" (Steiner and Steiner, 2000, 76).

A profound example of why government intervention will always be necessary in

commerce is provided by the Standard Oil Company and John D. Rockefeller. Although Rockefeller claimed that his monopoly control was intended to eliminate wasteful competition and improve product quality, it was in fact a blatant attack on free markets and trade. Today, with a complex and rapidly changing marketplace, businesses will always be tempted to circumvent regulations. Many of the practices employed during Rockefeller’s time are still integral to maintaining success and increasing market share.

The persistence of collusion, bribery, tacit agreements, greed and legal manipulation of federal regulatory statutes necessitates ongoing regulation. The role of government in this area is still debated. When one business dominates an industry through supply and demand manipulation that exploits consumers and limits their supplier options, it goes against capitalist principles and can have disastrous consequences. Thus, government regulations are necessary to ensure fair competition and trade within the industry and act as a countervailing power between businesses and consumers.

The use of lawsuits to exploit commercial laws and regulations, specifically those pertaining to anti-trust, is a result of unclear language. It is important to regularly review this language to avoid such exploitation. Additionally, when examining language within the United States, it is vital to take into account its impact on freedom of speech and censorship with respect to the First Amendment.

The diverse forms of expression in the U.S., including sexually explicit content and literature by groups like the Ku Klux Klan, are protected by the Constitution's guarantee of freedom of speech, which also prohibits government restriction on spoken or written ideas (Steiner and Steiner, 2000, 108). The emergence of rock-n-roll in the 1950s has facilitated a more direct use of

language in music.

Time Warner, an entertainment industry corporation, has received criticism for its involvement in the creation and support of "rap" or "hip-hop" music. Despite government efforts to restrict the distribution of this genre, Time Warner's status as a private entity protected by the First Amendment has made it challenging. In 1992, Warner Bros. Records released Body Count by Ice-T; shortly after its release on April 11th of that year, a Texas state trooper was killed by a young black man driving a stolen truck while playing Tupac Shakur's song which contained lyrics about "blasting" and "dropping the cop" during a traffic stop.

Steiner and Steiner (2000, 104-105) state that Ice-T's album features lyrics about shooting police and acquiring weapons for surprise attacks. Moreover, some rap music is notorious for its derogatory, discriminatory, and offensive content towards women. Despite pressure from politicians, civil rights groups, and social activists, Time Warner has refused to stop releasing this genre of music known as "gangsta rap." The entertainment industry's lack of censorship regulations or codes of conduct has enabled corporations to profit greatly from the increasingly popular and lucrative "gangsta rap," which promotes violence and degradation – a scandalous practice that poses a danger to society.

Spreading messages of hate and violence through marketing contradicts the principles of free markets and freedom of speech. It is essential for businesses that produce music to exercise social responsibility. Corporations must take on the responsibility to control their artists who promote the mistreatment of women. Both music videos and movies that showcase "Gangsta Rap" convey a distorted sense of glamour in lawlessness. The type of behavior that businesses glorify, they also promote.

It is

important for the entertainment industry to not automatically consider constitutionally protected forms of speech as deserving of legal protection or respectability in business. The pursuit of profits should not be hindered by freedom of speech and absence of censorship. In order to effectively enforce moral and ethical codes of conduct, the Federal Communications Commission (FCC) and the Federal Trade Commission require permission and guidelines from the U.S. Congress and Senate.

Although there may be disagreement about government intervention in the music industry, the diverse composition of American culture necessitates restrictions. Promotion through advertising is essential for marketing music and other products. However, the excessive use of people and merchandise in advertisements creates a need for governmental involvement in business practices. In America, alcohol and tobacco advertising are particularly scrutinized.

In recent years, industries have received significant attention due to their promotional and marketing techniques. Market segmentation and target marketing have enabled them to associate consumption with images of a good life or satisfaction of needs, resulting in slick advertising. Steiner and Steiner (2000, 582-583) suggest that the immense profits these industries enjoy are positive evidence of advertising increasing consumption. Michelob beer's campaign encouraged drinking on weekdays with the slogan, "Put a little weekend in your week" (Steiner and Steiner, 2000, 584). In addition, research shows that approximately 82% of smokers begin before the age of eighteen and about 90% before the age of 21.

Significant returns can be gained by targeting young smokers, according to studies. Joe Camel cigarettes were recognized by six-year-old schoolchildren as much as the beloved American character, Mickey Mouse (Steiner and Steiner, 2000, 592). Although the negative health effects of smoking and alcohol

consumption are more evident than ever before, excessive drinking has been directly linked to societal issues such as domestic violence. Furthermore, decreased productivity and increasing healthcare expenses are associated with using these products resulting in direct and indirect costs for taxpayers across the country. Interestingly enough, it is not uncommon for the government to provide subsidies to this industry similar to the tobacco industry.

The negative impact of products with unintended consequences is felt by American society in a domino-like effect. Advertising for these products leads to costly insurance claims, lost work time, and harmful effects on the youth. Although they shouldn't be made illegal or banned, intervention is needed to address false advertising tactics, marketing concepts, and glorified images through government action.

Throughout the history of the United States, various groups distinguished by characteristics such as age, gender, race, and religion have sought to address losses resulting from discrimination - whether intentional or not. The Civil Rights Act of 1964 was primarily established to combat injustices against African Americans; however, it also extends to all races, colors, religions, sexes or national origins and safeguards against illegal employment practices by companies (Steiner and Steiner, 2000:648). Title VII of this law is enforced by the Equal Employment Opportunity Commission (EOCC). At Duke Power Company's steam generating plant in Draper, North Carolina workers were segregated based on race for many years.

Prior to the enactment of Title VII, Black workers were segregated to the least profitable department at the plant (Steiner and Steiner, 2000, 650). However, after passage of Title VII, the plant abolished its publicly racist policies and opened all positions to Black employees. Nonetheless, a new

policy was established that required a high school diploma to advance up the ranks of attrition. Due to the inferior education provided to Black workers in Draper compared to their White counterparts, this requirement hindered their advancement opportunities (Steiner and Steiner, 2000). This hurdle was deemed unlawful in the 1971 Supreme Court Case, Griggs v. Duke Power, where it was determined that diploma mandates and discriminatory tests were illegal practices.

The 80 percent rule, which originated in 1978 as a guideline by the EEOC, required a business to hire a minimum of 80 percent of its employees from the demographic group that comprises the majority of its workforce (Steiner and Steiner, 2000, 651). This rule sparked numerous new employment regulations, some of which have been disputed in U.S. courts. These regulations aim to promote equal distribution of employment opportunities, business prospects, and government contracts among various groups.

Although certain policies have been successfully challenged, resulting in new regulations that go against their original intentions and may seem like reverse discrimination, the ultimate goal of redistributing resources remains important. Business procedures will always need to be intervened in to address past and present injustices in American society. It is crucial to protect not only job and business opportunities but also the environment and people, which are the country's most valuable assets. Environmental regulations and governing agencies have been put in place as a response to issues such as toxic dumpsites, chemical brownfields, air, and water pollutants. The health of the environment and individuals has been threatened by industrial pollution.

Dr. Daniel Schultz, a surgeon at the Santa Fe India Hospital, identified high rates of malignant mesothelioma between

1984-1985 and 1970-1982 in an Indian pueblo located in New Mexico (Steiner and Steiner, 2000, 482). Investigation revealed that a brick-manufacturing plant in the area had a privately owned railroad which transported materials between the plant and the Santa Fe main railroad, using a steam locomotive. Workers discarded insulation made from asbestos along the railroad tracks while replacing it on the boiler and pipe of the steam engine (Steiner and Steiner, 2000, 483).

Indians from the pueblo discovered multiple uses for it in their homes and rituals, but it caused sickness (mesothelioma) (Steiner and Steiner, 2000, 483). Limited information often leaves workers and communities unaware of industries' effects in their area. In 1930, the workers discarding the insulation were likely not informed of its harmful effects. Some businesses ignore environmental concerns for the sake of cost. Businesses may not provide information to their employees about manufacturing materials or health risks associated with them. Government regulations prohibiting environmental contamination are vital for national health and prosperity. Economic growth or increased productivity should not come at the expense of employees' health, neighborhoods, or waterways.

The primary concern for any government intervention, in terms of cost-benefit ratios, should be the worth of human life. Regulations must be put in place to significantly decrease the benefit gained by businesses through their access to knowledge and information that the general public lacks. Although there are arguments both for and against government involvement in business operations, many instances illustrate its indispensability. Nevertheless, enforcing governmental regulations requires thorough analysis of the actual expenses and anticipated advantages.

According to their experience, business firms have found that policies located towards the left of center frequently result in

unsatisfactory outcomes. These include waste, inefficiency, excessive spending, and ineffectiveness within both businesses and government. Recent estimates suggest that regulations on the private sector cost between $600 to $700 billion dollars. As there are so many regulations enforced on corporations, it is impossible for them to comply with every policy and law they are subject to (Steiner and Steiner, 2000, 309). Excessive regulation can be harmful as exemplified by laws around the Northern Spotted Owl's impact on the logging industry.

Steiner and Steiner (2000, 508) argue that in order to maintain the operation of saw mills in the Pacific Northwest wood products industry, it is necessary to harvest some old growth timber. Old growth forests are those that have developed naturally without human interference. While the Northern Spotted Owl typically prefers old growth habitats, subsequent studies reveal that they can live and breed in younger forest or even logged areas (Steiner and Steiner, 2000, 510). One impressive example of this adaptability is an Owl that nested in a maple tree situated between a fitness club and local pub in downtown Everett, Washington (Steiner and Steiner, 2000, 511).

Environmental groups in the 1980s utilized the Endangered Species Act to combat bird extinction and the decrease of old growth forests. Their objective was to prioritize forest conservation above the desires of timber companies, logging communities, and lumber mills. This was especially significant as the majority of old growth forests in America are located on federal land under U.S. management.

As per Steiner and Steiner's (2000) research, companies in the United States compete for logging rights on particular timber lands chosen by the Forest Service and Bureau of Land Management through

a bidding process. It is important to mention that in 1990, the Northern Owl was classified as a "threatened species" nationwide by the Department of Interior.

As a result of the negative consequences faced, logging was prohibited in an area of 70 acres surrounding the nest and heavily limited within a radius of 2,000 miles. A three-year ban was introduced, even if an empty nest was discovered to ensure abandonment (Steiner and Steiner, 2000, 515). The cessation of timber sales had an unfavorable impact on small town economies as well as mills, trucking, and shipping businesses.

Due to government regulations, companies had to import lumber from foreign sources, leading to a loss of jobs and economic devastation in affected towns. To combat this fallout, government programs spent over $1 billion dollars retraining unemployed workers. Additionally, landowners successfully sued the government for loss of land use (Steiner and Steiner, 518-519). While old growth forests and the spotted owl are valuable to nature, the drawbacks of these regulations far outweigh the benefits. Private citizens, businesses, and entire towns suffered financially as a result of these policies.

Millions of dollars were paid out by the federal government to injured claimants due to lawsuits caused by these regulations. Taxpayers are particularly affected as it is their funds that have to be distributed. Furthermore, these policies have caused harm to the notions of fair trade and competition as companies have sought foreign suppliers just to keep their operations going. The actions of the government were a prime example of inefficiency and ineffectiveness, where it tried to pacify the demands of certain interest groups (environmentalists) at the expense of businesses and people (humans), while

actual wildlife could have thrived in other environments. Government regulations ought to be formulated to provide more opportunities and competition for businesses instead of acting against them.

Efforts by the government to regulate business should prioritize improving efficiency and addressing issues, rather than creating a harmful economic environment.