Most of the sectors and industries in the business world such as interior painters in Calgary have been complaining about government regulations. Corporations as well as their spokespeople are typically denouncing the government policies as being irrational impediments to the following:
- Job creation
- Economic efficiency and;
- Profits
What’s not surprising is that, there are numerous firms who have looked into loopholes and moved their operations overseas and violated the antitrust laws while trying to deal with these regulations. The fact is, American businesses have suffered and prospered because of the ever-growing number of policies as well as complicated tax codes being imposed.
It is for this reason that the relationship between the government and companies may be either adversarial or collaborative. Above everything else, the rules protected consumers from any exploitative practices that a business may apply.
How Businesses are Navigating through Government Policies?
In the next paragraphs, we are going to take a look of some of the regulations prepared and implemented by the government to be able to see its impact on businesses.
Restraining Businesses
The very first antitrust law was passed by the Congress in 1890 and it follows periodic changes in corporate tax rates as well as the constantly changing regulations that govern businesses. Generally speaking, business community opposed these regulations, tax levies or laws thinking that it will impede their profitability and operations.
The common argument against excessive and overregulated taxation is, they are imposing net cost onto the society. As per critics, the government regulation slowly disrupts innovation and fails to adapt to the changes in our society.
The FTC
FTC or the Federal Trade Commission is one of the top enemies of almost any business. This was founded in 1914 with the objective of protecting consumers from anti-competitive or deceptive business practices. These include anything from price-fixing, fraudulent advertising, formation of monopolies and so on.
Securities and Exchange Commission or SEC
The Congress has created this agency in 1934 to be able to regulate IPOs or Initial Public Offerings, to ensure full disclosure and also, to enforce rules that will govern stock trading.