Question

Raising the minimum wage is an example of how the government can regulate business within a capitalistic society. There are many other areas in which the government provides regulatory oversight. Do you think that such oversight is necessary, or would market forces control business practices? There are many good arguments on both sides of the issue, so let me know where you stand.

Answer 1

I feel market forces should control business practices as:

• It provides equal platform to all companies and helps in fair competition
• It helps consumer to get the maximum benefit as all companies focus on their delight
• It provides organization freedom to act as per their capacity and understanding of market
• It helps to increase competition which is the sign of healthy economy
• It improves efficiency and productivity of firm
• It improves quality of goods and services offered to people
• It ensures optimum resource utilization with minimum wastage