There are some positive effects government intervention could produce. These pros are, in fact, few, and questionable, at that. Take for instance, the situation with Microsoft. The government is sticking its nose in where it doesn't belong. Let's try and get passed that point for a moment and examine the good that could come out of government intervention.
One possible pro to this intervention is that it would most likely create a more equal market (not "fair market.") The term "fair market" is like an oxymoron in this case because basically the government is saying, "Hi, we're the United States government and we're sorry but we cannot let you continue to run your business. Although you have spent your life working to improve and simplify the computer industry, we simply feel you have made too much money." How is this in any way fair? In some people's eyes it is for the best of the economy and the computer industry, but it is definitely not fair. For the government to break down Microsoft, a multi-billion dollar company would be ridiculous. True, maybe the market would be more equal. No more mammoth company, just moderately sized companies. This could be a pro. But who is the government to decide that a company is too large? And if so where is the line drawnone billiontwo billiontwenty billion?
One other possible pro to government intervention in the Microsoft case would be that smaller, newer companies would have a "fairer" shot at being recognized. Once again, the term "fair" is open to discussion. What is considered to be fair to some can be completely unfair to others. Smaller computer companies would undoubtedly have a better chance at becoming popular. However, people are free to do whatever they want. No one forces people to use Microsoft applications. They are simply put, the most user-friendly, simple but efficient programs that happen to be compatible with a great deal of PCs. Microsoft was that small, unknown company once too. They had no help from the government in their quest for fame and fortune, why should other companies?
The few pros to government intervention are arguable. Now let us discuss the cons to...
... middle of paper ...
...what our government basically saying.
Microsoft may well be a monopoly. It is a huge powerhouse corporation that can afford to give its products away for dirt cheap to control the market. There are, however other options. There are other programs for IBM computers and there is also the option of using a Macintosh system. There are other programs that are good, and the new Macintosh computers have proven to be faster than the latest Pentiums. Why, then? Why is Microsoft the leader? The answer is Bill Gate's work is done well. It is user friendly, innovative and works with the majority of PCs. No other company's product is used more widespread than Bill Gates. Even the prosecutors putting him on trial probably use his programs. He should be left alone. He has done no one any harm. He makes life easier for the non computer literate, and has made thousands of employees and shareholders millionaires. He has used fair business practices and started from nothing.
Even if Microsoft is a monopoly, it will not end the free market system. If anything, the government will ruin it. A free market should mean it is free of everything excluding commerce, including government intervention.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- All nations can get the benefits of free trade by being specialized in producing goods they have a comparative advantage and then trade them with goods produced by other nations. This is evidenced by comparative advantage theory. Trade depends on many factors, country's history, institution, size and geographical position and many more. Also the countries put trade barriers for the exchange of their goods and services with other nations in order to protect their own company from foreign competition, or to protect consumers from undesirable products, or sometimes it may be inadvertent.... [tags: free trade, market failure]
1825 words (5.2 pages)
- Government Economic Intervention Introduction The United States began its existence as a country newly free of the British Colonial ways and quickly adopted capitalism and its free market, Laissez Faire, ideology. As the economy grew, so did the government and their desire to influence or control the economy, as a means of maintaining equilibrium and fairness in the market place. More than two centuries later, the people of the United States began to doubt their Governments growing desire to intervene in the economy, which has gradually evolved the US into a mixed market economy from the pure free market capitalists we once were.... [tags: economy, federal government, economics, US]
1760 words (5 pages)
- At the beginning of the 20th century, the rise of monopolies forced governments to enact anti-trust legislations in order to maintain a free market. Since then, the amount of government intervention in business has grown exponentially. In recent times, fraud and moral hazard have caused a focus on corporate governance legislation. Regrettably, ethics cannot be legislated, and government intervention only hurts businesses which conduct themselves properly while doing nothing to mitigate new forms of unethically-designed financial engineering.... [tags: Business Administration]
978 words (2.8 pages)
- American political government contained two large parties which control most of the Congress: the Democrat and Republic parties. Both parties have held different points of view on different topics such as health care. However an effective government is also based on a how a leader governs the country. Lao Tzu was an ancient Chinese philosopher, and Niccolo Machiavelli, in The Prince, an Italian philosopher, present ideas that are very contradictory to each other. Lao Tzu appears liberal as a master who will not control the people while Machiavelli states a prince must emerge and take control of his people.... [tags: Government]
1220 words (3.5 pages)
- Market failure and how government can attempt to correct it Market failure is a situation in which the free market fails to allocate resources effectively, causing a situation where the quantity demanded by the consumer is unequal to the quantity supplied by the supplier. There are many reasons why market failure can occur, and it is not a rare occurrence. This appears to be backed up in statements by Nelson (1987) and Dahlman (1979), quoted in the textbook Economic Efficiency in Law and Economics: “A fundamental problem with the concept of market failure, as economists occasionally recognise, is that it describes a situation that exists everywhere” (Zerbe, 2002, p.... [tags: Externality, Market failure, Welfare economics]
1320 words (3.8 pages)
- Fordism can be defined as the model by which the capitalist class attempts complete management of the production of wage labour by placing particular emphasis on the relationship between production and the commodity market in which the wage-earners attain their means of consumption. (Aglietta, 1979, p117) This period of economic development occurred from the early 1900’s through the ‘Long-boom’ from 1944-1979 and stems from the practises put in place by the Ford motor company in the early 20th century.... [tags: Capitalism, Free market, Economics]
1889 words (5.4 pages)
- OPPORTUNITY COST & THE FREE MARKET Scarcity is one of the most basic and crucial points to understand in microeconomics.1Scarcity means that we cannot have all the needs and wants to satisfy our desires. Scarcity can be applied to almost anything. Due to the scarcity of products we must make a choice of what we want. We must choose whether to do one thing or another by what we value to be most important to us. This, therefore, leads to us opportunity cost. Usually when one has to make a decision over what to do, buy, or build, it is narrowed down to two things.... [tags: Economics]
1749 words (5 pages)
- Market failure has become an increasingly important topic for students. In simple terms, market failure occurs when markets do not bring about economic efficiency. There is a clear economic case for government intervention in markets where some form of market failure is taking place. Government can justify this by saying that intervention is in the public interest. Government intervention occurs when markets are not working optimally i.e. there is a Pareto sub-optimal allocation of resources in a market/industry.... [tags: Government Intervention]
563 words (1.6 pages)
- Government Intervention For many nations, it is essential to choose a system of organization that successfully and thoroughly meets the needs of all the people. While some countries have supported the idea of communism and strong government intervention in the economy, others have limited the role and power of their governing body in the marketplace. For instance, in the United States, the government has a small role in the planning and monitoring of their economy. Individuals compete heavily against one another to receive the maximum profit for themselves in an sufficient manner.... [tags: Papers]
1842 words (5.3 pages)
- Market Price MARKETS:- Markets exist for the vast majority of goods and services. Markets can be defined broadly or narrowly. For example there are the consumer goods, capital goods, commodities, financial and labor markets. Each of these broad categories can be broken down into more specific markets. For example within the financial market there are markets for foreign exchange and for long term loans, within the corn modifies market there are the markets for corn and copper and within the consumer goods market there are the markets for clothes and cars.... [tags: Economics Business Market Equilibrium]
1137 words (3.2 pages)