Question

Think of "regulatory bodies" as the referees and "regulations" as the rules. What if we eliminated the "regulatory bodies" and the "rules"? What do you think would happen? Do you think that the U.S. can operate a "true" free market economy (void of regulatory bodies and regulations)? Why or Why not?

Answer 1

If rules and regulatory bodies are eliminated then I feel US can't operate as a true free market economy because then every company will start doing whats better for his own and not for the economy. This will lead to corruption and deceitfulness. Profit seeking will become the sole purpose and foul play will be the only way companies will be operating.

In between all these customers will suffer as companies can raise their price to any levels and if all companies raise their prices then customer has to buy even at high prices.

Rules and regulatory bodies are very much required for companies to perform ethically and this is better for customers.