Question

Explain in your own words the Iron Law of Responsibility and the social contract. Give an example of a shared understanding between you as a consumer or an employee and a firm with which you do business or for which you work. Is Congress justified in creating new regulations to govern the financial services industry?

Answer 1

The Iron Law of responsibility explains the elimination of responsibility, causing two issues that hinder social power and imbalance over a long period. Automatically if a person is liable for hiding of responsibility and eventually, he or she has to lose all of it.

Social contract is the type of contract that states the relationship between the political people and the people regarding duties and responsibilities.

As an employee, I have realized that the company whom I work with is mine too and is the authority with pays my salary. Once it goes under incomplete targets and low-profit margins, this made them delaying salaries. But by the small period, all were paid, so I understand the situation. Good understanding helps in creating a good working relationship with the company, and in the future, they will also be helpful.

Yes, congress is justified in changing the regulations to govern the financial services industry as this will smoothen the working of the financial institutions and decrease the number of procedures, making them flexible and less time-consuming.