There have been relatively more government regulations despite the complaints by the business world about the number of laws meant to restrain the operations of the market. Over the years, most governments have been instituting laws and regulations like income tax to businesses and antitrust laws with the corporate body terming them as excessive and overstepping by the state in its mandate (Davis, 2018) . The rules put in place are meant to ensure fair play by every stakeholder in the market. Therefore, it is the role of any responsible government to ensure that the interests of the business and the consumer are taken care of.
The government needs to come up with laws that protect consumers against exploitation by businesspeople and small businesses against large corporations. As the government gives leeway to private entities to operate in a free market, the traders may exploit customers by falsifying the quality and quality of their products, giving misleading information or selling harmful products (Geginat & Saltane, 2016) . Likewise, large entities may form monopolies or engage in underhand deals to gain undue advantage over small businesses eventually driving them out of the market. The government also ensures those entities do not pollute the environment as they carry out their operations.
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The financial sector needs more regulation due to the role it plays in the economy of a country. Leaving them to operate in a free market can prove to be catastrophic as some may take actions that may contribute greatly to economic difficulties (Deli & Hasan, 2017) . This was the case during the market crash of 1929 and the Financial Crisis of 2007/08. In both instances, the banks took the biggest blame for the decisions they made in years leading to the crises. In the years leading to the 2008 crash, many banks in the U.S and Europe were engaged in fraudulent business practices as a result of deregulation.
References
Davis, M. (2018, October 5). Government Regulations: Do They Help Businesses . Retrieved from Investing: Laws and Regulations: https://www.investopedia.com/articles/economics/11/government-regulations.asp
Deli, Y. D., & Hasan, I. (2017). Real effects of bank capital regulations: Global evidence. Journal of Banking and Finance . https://doi.org/10.1016/j.jbankfin.2016.11.022
Geginat, C., & Saltane, V. (2016). “Open for Business?” —Transparent government and business regulation. Journal of Economics and Business . https://doi.org/10.1016/j.jeconbus.2016.06.001
