Question

Outline the evidence that business “lost control” over regulated capitalism. What parts of regulated capitalism did business originally agree to? Provide examples that demonstrate how regulated capitalism transformed away from what business agreed to.

Answer 1

Ans.
Regulated capitalism term refers to the trend of increasing regulatory intervention in the ways businesses are being done.

Despite the world over the wave of being the talk of liberalization and free market economy , the trend of increasing regulatory capitalism are widespread across many businesses and industries.
When we talk about the regulatory capitalism we look at the role of the rule making authorities and free markets. Regulatory capitalisim started with social welfare and ensure equitable distribution of the wealth but it has turned out to be more roadblock in the capitalism. For e.g. take the case of information technology industry , where many start up companies started mushrooming and expanding their business , given the regulatory constraints on the privacy laws and many other regulatory interventions . SImilary in the field of pharmaceutical industry by regulating the pricing and make many products sold as generics regulatory contracts have impacted the growth of many companies in this sector.