Question

"Government should reduce regulation to unleash business and let the economy grow."  Do you agree or not agree?  Explain your position.

Answer 1

Answer) Yes, the government needs to reduce the regulations and let the economy along with business grow organically. The idea of free market forces was first summarised by Adam Smith as invisible hand. Which drives the economy due to self interest of the consumer and producer. In this way the Equilibrium would be automatically attained and the issue of surplus/deficit could be addressed.

However due to prevalence of social factor like poverty and inequality the market needs to be kept in check. For instance, the market sets a price for food products but this price would be very hefty for a poverty ridden individual. In such a case the government needs to intervene in order to assure the welfare of the individual.

Similarly if market is driven by self interest then exploitation of working class could occur. For instance, in capitalism economy is driven by self interest and class exploitation of the waged labor.

Hence the government should reduce regulations but not completely. In case of a market failure the government needs to intervene in order to assure the social welfare of the citizen.