Posted by: Middleclass Search | September 29, 2012

Regulations Part 1

The second capitalistic system area needing economic and political attention in order to maintain a strong middle-class is the area of regulation. The assumption is often made that a free market is equivalent to a market without regulations. Many corporations and their lobbyists like to propagate this assumption.  Since before Adam Smith wrote The Wealth of Nations it was understood that some type of regulations were required on corporations. Smith was concerned about how several of the international trading companies in his time were running roughshod over various areas of the world.  Without regulations, corporations would be free to practice commerce much as a band of pirates do.  Just as laws define a civilized society, so regulations define a civilized business world.

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