Question

Let's consider the issue of promoting competition---sounds like a core us value. competition is good for the consumer and good for business, but is it really? wal-mart has done wonders in providing low cost goods to help consumers manage tight budgets but is the mega-retailer really good for the economy? some would argue that when wal-mart comes into a small town, locally owned businesses dry up and are forced to close and that most of the money spent by consumers at wal-mart does not stay in the local community. maybe wal-mart has gotten too big for government (federal or local) to control. the same could be said about the oil and gasoline industry---prices seem to fluctuate without any relationship to the needs of the consumers, who many times do not have an alternative. my question is this, where should the line be drawn between promoting competition and regulation of business? should the federal government be more active in the regulation of such giants as wal-mart or the oil and gas industry or will open competition prove to be in the best interests of the consumer?

Answer 1

Circumstances that help Walmart succeed usually makes it difficult for little businesses to thrive. The absence of government regulation generally profits big businesses and is unfavorable to small businesses. This leads to the emergence of monopolies and the abolishment of little businesses, even if they are original and innovative. In theory; more government regulation (if fair and just) would help small businesses compete more fairly with big business.