New Threats to Freedom Response by Jeremy Alm

Reads: 171  | Likes: 0  | Shelves: 0  | Comments: 0

More Details
Status: Finished  |  Genre: Non-Fiction  |  House: Booksie Classic
Response to the 'New Threats to Freedom' scholarship prompt.

The following video was referenced:

Submitted: March 30, 2011

A A A | A A A

Submitted: March 30, 2011



After watching Max Borders’ thoughts on regulation, it is not hard to understand why businesses like his barbecue sauce never take off. Regulation prevents people who do not belong in the business world from harming themselves financially and hurting their targeted customers, and keeps the business world competitive. Borders suggests that the courts would be enough to monitor businesses without the need of government regulations. I’ll explore this scenario.

Mr. and Mrs. Murphy want to start a business. They decide to make jam out of their home and sell it at the local farmers’ market. Without a health inspector in the way to make sure their home upholds proper sanitary conditions, they hit the ground running. Unknowingly, the couple fails to properly sterilize their kitchen and salmonella contaminates several jars of jam. The jam is a hit at the market; all the jars sell. A few weeks pass and the local doctor reports that 40 people contracted salmonella. A child of only four years old is one of the victims of the botched jam. He dies within weeks due to his underdeveloped immune system. The salmonella is traced back to the Murphy’s jam. The family of the dead four-year-old is furious and sues the Murphys for damages (remember in Borders’ ideal world, the courts are the only available resource in the absence of regulatory agencies). A sympathetic judge rules in favor of the family and awards them $50,000 in damages. The Murphys don’t have business insurance because without regulation it’s not required. They are forced to pay out of pocket and must sell their home in order to satisfy the judge's ruling. If regulations such as health inspectors and required business insurance had been present, the couple would have been forced to comply and this accident may not have occurred. Simply pulling the government out of the equation doesn’t work. People inherently make mistakes and the need for a safety net is crucial in maintaining order in a democracy.

Borders also suggests that regulation keeps large corporations in business by keeping new competition from entering the arena. In reality it has the opposite affect. While regulation can be costly, especially to small companies, it forces entrepreneurs to work harder to ensure the life of their businesses. In Borders’ scenario, the lack of permits and health inspectors would allow any business to profit quickly, but poor business models could lead to failure. However, in the presence of regulations, businesses are forced to construct solid business plans that account for regulatory costs. If business owners put forth the effort in the planning phases, it is possible to succeed in the shadows of large corporations.

Borders believes that with regulation “good businesses… never come into existence”, when in fact they promote solid companies. Without regulations, a form of anarchy would promote financially risky and dangerous endeavors while allowing large companies to dominate the markets.


© Copyright 2018 JALM. All rights reserved.

Add Your Comments: