Why does government regulate business?
Government regulation of business is often seen as a necessary evil of the free market economic system. The United States has local, state and national levels of government regulation on businesses.Social JusticeGovernment regulation often attempts to balance the supposed social injustices of the free market system. Governments often force business to pay for community improvements or individual programs that provide benefits for non-business reasons.TaxesTaxes are imposed on businesses to ensure governments receive their portion of business profits. These taxes are used to pay for the defense and infrastructure of the nation, as well as other services that the government sees fit to provide.Ensure QualityLocal and state governments create licensing boards and agencies that require businesses to pay fees for operating permits or technical licenses. These permits and licenses may require renewal tests or fees to ensure the company consistently meets government regulations.Allocate Resou
