Regulated Capitalism Definition

The debate over regulated capitalism has persisted throughout time. Individuals argue that regulated capitalism protects harmful and oftentimes destructive competition between corporations, while others claim that laissez-faire economics encompasses the idea of individual faith and trust that is the American spirit. Overall, The fairest policy for the governance of the economy is through regulated capitalism because of its protection of the consumer, promotion of a safe workplace, and its encouragement of a clean environment. Laissez-faire economics is defined as “...the belief that economies and businesses function best when there is no interference by the government.” (Study). This theory involves the idea that competition and individual

Proponents of this practice insist that deregulation amounts to corporate welfare and results in many industries exploiting their workers, the consumers, and the environment to maximize profit. These individuals analyze the effects of regulation, and “This, in turn, helps advance a ‘constitutive interpretation’ of the role of regulation—a perspective that focuses on the role of regulation in the continuing expansion, adaptation and transformation of capitalism.” (Levi-Faur). The theory of regulated capitalism can further be divided into two categories: economic regulation and social regulation. Economic regulation controls prices. It is designed to protect consumers and small businesses, and “... it often is justified on the grounds that fully competitive market conditions do not exist and therefore cannot provide such protections themselves.” (U.S. Department of State). Social regulation involves ideas that are not economic such as safer workplaces and a cleaner environment. Social regulations “...seek to discourage or prohibit harmful corporate behavior or to encourage behavior deemed socially desirable.” (U.S. Department of State). These compounding factors of regulated

When the government is involved in regulated the economy, it is therefore involved in the means of production. The means of production include workers, workplaces, and resources. In order to establish safe conditions, the government has created a variety of legislation to maintain these environments. The Occupational Safety and Health Act (OSH Act), was enacted in 1970 to provide a consistent regulation throughout the nation. This was enacted in a response to an increased amount of serious injuries and deaths that occured in factories and other workplaces. Under this legislation, employers are obligated to eliminate hazards, such as exposure to toxic chemicals, mechanical dangers, and unsanitary conditions. In addition, “if workplace hazards cannot be eliminated, provide employees with adequate safeguards and protective gear at no cost to them.” (Find