Source 5

  • Irons, John and Isaac Shapiro. ” Regulations, Employment, and the Economy” Economic Policy Institute. Economic Policy Institute. 11 Apr. 2011. Web. 11 Nov.2014.
  • History of search: google search terms with ” government regulations and the economy”, I decided to use this because it backs the idea that regulations are good and aren’t as bad as what everyone thinks.
  • Identification: Non-scholarly source, Website article not from a database, not peer reviewed, doesn’t seem to have citations, but does have endnotes.
  • Summary:

The economy is in a terrible shape due to the recent recession caused by the massive deregulatory steps the government took. Now it is slowly recovering and many believe the reason for such sluggish recovery is the new regulations brought in by the government. John Irons and Issac Shapiro believe otherwise. They believe that the economy needs more regulations because the benefits outweigh the cost to create them.

The public are misled by inaccurate reports from the media that new economical regulations are costing us more money than it is helping us. Those reports are wrong. Studies shown in the article reveal that most regulations benefit the economy and the public. The amount of benefit is shown to be three times the cost of the programs. Examples are policies passed by The FDA, EPA and more. The positives may not be a complete refund of the capital spent but improvements on the environment, food and other aspects of the market can bring benefits to public health. Overall the positive effects of regulation can outweigh the costs through the improvements to public.

We need regulations because of the disaster the economy just went through. A housing bubble popping caused one of the biggest recessions of U.S history if not the biggest. The reason behind all of it was deregulation. Markets ran free without any restrictions from the government allowing insecure sources of capital floating around. Mortgages and loans without backing caused a sudden crash when no one had “real” money to pay the banks back. This could have been avoided if the government stepped in. Strict Regulations during that time could have prevented or at least soften the blow of the recession. Regulations could have stopped people from investing money they did not have or investing too much money.  The outcome could’ve been different if we the government had oversaw the economy and regulated the right way.

 

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