Реферат: US And The World Economy Essay Research

done, they need to hire attorneys. Studies have shown that the long-term costs

of certain regulations can reduce the productivity level. The consumer also

suffers from regulations; the more a corporation has to spend on the regulations

the higher the prices of the product or service. According to the office of

Federal Register every man, woman and child in America pays $2,800 in regulatory

costs. This means that each American works 40 days out of the year just to pay

for these regulations. Not only does it affect the cost of the products for

Americans, but it also hurts them at work. When a business puts all of its

resources to regulatory laws, it is using the resources less efficiently; it is

forced to operate in a less productive, in a more costly way. Eventually this

leads to the employees, which will deny them a higher standard of living. Many

firms cannot afford to give their employees as much benefits, as they should

receive due to the high regulatory costs. Many expert economists are against

over enforcing to many regulations. They feel that it cuts down the competition

in the economy. Deregulation has been very popular among economists over the

last 25 years. They feel that deregulating the 4 major industries in the late

70?s was one of the best decisions for our economy. Robert Cradell and Jerry

Ellig did research on how the airline, trucking, electricity sector, natural

gas, and telecommunications were affected after they went through deregulations.

They found many benefits that not only helped the company, but also the

consumer. During the first two years after deregulation the average prices fell

from 4 to 15 percent, and after ten years prices went down twenty five percent.

In some cases prices even fell to half of what they used to be. They also found

out the quality of service improved. Corporations were able to give their

customers more options to choose from and better reliable service. ?More

freedom equals more benefits? says Ellig about deregulation. Rates fell faster

in parts of the market where regulators permitted greater customer choice.

Giving customers choices will allow for a more competitive market and in turn

more benefits for everyone. From past experience we know that regulations can