Question

: List and support your choice of one industry where there is too much federal government regulation and one industry where there is not enough federal government regulation.

Answer 1

The alcohol industry is one of the heavily regulated industry in united states.Regulation of alcohol in the United States uses a three-tiered system that perpetuates big business’s control on the alcohol industry and has helped maintain a cartel-like hold on the marketplace ever since the end of alcohol prohibition in 1933. The power the distributor has on the market cannot be underestimated. In order for alcoholic products to be sold, the law requires you to go through a distributor who has been licensed by the state to sell to the retailer. This means if you decide to import or start up a brewery, you’ll have to acquire a distributor license yourself and deal with the subsequent overhead cost associated with it. The other option is signing a contract with an existing distributor who will sell your beer while expanding their own distributing network. The cost here is perpetuating the control big business has on the alcohol industry.
If you decide to enter the beer market, you better be prepared for the complex web of restrictions. First, you will need a Limited Liability Corporation (LLC). You must file the proper paperwork with the Alcohol Tobacco Trade and Tax Bureau (TTB) for the benefit of paying excise taxes and get the labelling permits. All the requirements to protect consumers begin with the level of production and end at the beginning of distribution. The distributor takes a profit from the sales but is really nothing more than a fancy way of saying “I’ll sell that for you at a higher cost because the government says so.”
Since the late 1980’s, changes have been taking place in both the natural gas and electricity industries to encourage healthy competition in the marketplace for both businesses and residential customers. As time passes, more states are opening up energy deregulation, and over time we expect all states to also make the change.
The states that have opened their markets up to energy suppliers have seen their rates drop, and their citizens have reaped the benefits of more affordable energy. Here are other examples of deregulation in the United States that prove how it can benefit the consumer.
In 1978, airlines were strictly regulated by the government. Fares, routes, the new markets existing airlines could enter, and other factors were controlled by government regulators. In 1978, the Airline Deregulation Act changed the way airlines were controlled. After deregulation in 1978, many aspects of the industry, including the price to fly, were controlled by the market. Consumers often paid less, the government stopped subsidizing routes and companies, and airlines have looked more like the rest of businesses in the United States since that time. The strong companies thrived, the stable companies survived, and weak companies merged or closed.