Pros And Cons Of Under Regulatory Efficiency

252 Words2 Pages
Under regulatory efficiency, business freedom includes free negotiation of labour and minimal state labour laws. According to Heritage.org, “Rigid labor regulations prevent employers and employees from freely negotiating changes in terms and conditions of work, resulting often in a chronic mismatch of labor supply and demand.” The reason that I am opposed to this idea is because again going back to the nature of capitalism and their primary object of profit maximization. The concern is that the lack of government intervention will lead to coercion from business to drive labour cost down. Proponent of market freedom suggest that the market will be the only thing that regulates labour wages but again there exist a very real potential that businesses