Реферат: US And The World Economy Essay Research

who might have been trying to take advantage of us, or tries to refuse us of the

benefits we deserve. There are also economic regulations, which protect our

economy by making sure corporations such as Microsoft, don?t become a

monopoly. This allows our economy to stay balanced. This protects the consumers

from higher prices, and also leaves them with other options. The major problem

with Regulations is the amount of money it cost not only to the corporations,

but the government and the consumers. In 1998 the direct annual cost of

compliance with federal regulations was seven hundred billion dollars according

to professor Thomas Hopkins of the Rochester Institute of Technology. Each year

the government spends more money on regulations, adjusted to inflation the

government spent 654 billion dollars in 1977 on regulations and 709 billion

dollars in 1999. Federal Regulations cause 1.3 trillion dollars in economic

activity to be lost each year. So the price of not only following these

regulations is expensive, but so is enforcing them. In the long run it cost much

for the corporations than it does the government. Costs such as paperwork,

permits, equipment, worker training, attorney fees, and record keeping are some

of the expenses which may be overlooked as cost of enforcing regulations for

firms. This affects the consumer because prices will rise, corporations will

reduce innovation and economic growth due to lack of funds. It also affects the

corporation?s decision on whether to hire a worker or how much should they pay

him. One of the major problems with the regulations is the burden that it puts

on small companies. Many of the large corporations have the funds to follow

these regulations, while small and medium sized companies do not. A small

company creates two out of every three new jobs in America. This means that they

play as important of a role in our economy as do the larger companies. According

to the Small Business Administration (SBA) firms with fewer than 500 employees

spend approximately $5,000 per employee on regulatory costs. While firms with

more than 500 employees spend only $3,500 per employee. The biggest hit is for

firms with fifty to a hundred people, they pay seven to ten times higher than