Why does the government think they need to regulate private businesses? When it comes to working conditions, employers must be responsible to create fair standards of how businesses should operate. Business owners must be able to make independent decisions regarding wages, hours, and safety to allow ones business to be successful. During President Regans years in office, he initiated a policy to deregulate businesses. He eliminated as many restrictions as possible, to let the businesses regulate themselves.
This means that these companies can pay employees any amount desired, so long as they meet federal minimum wage standard. A special salary for employees working overtime is unnecessary. Successful businesses will choose to pay extra anyway, as this will create a competition between businesses for quality employees. The hours an employee works need not be regulated so long as the employee is compensated for the time worked.
An example of how regulations can be counterproductive is in France. Currently employees are not allowed to work more than 35 hours per week. As of the 1st of January, that work week will be further reduced. Companies are fined if employees work more than 35 hours.Order now
This is causing a problem because the companies production is lower and so is the quality of the products. With reduced quality and quantity of the product, these companies could be forced out of business, leaving the government less to regulate. Safety is another key issue that the government likes to regulate. Because of the reduced work week in France, it will be interesting to see if safety becomes a problem for overnment regulators or private businesses.
In the United States, most business owners are aware that a safe work environment is a must. Safety is crucial for a successful and profitable business. Owners of private businesses must be trusted to police themselves. This allows supply and demand, which is what it takes to have trustworthy employees. These employees can quit at any time. The government does not need to have any control over private businessworking conditions.
As noted, factors such as wages, hours, and safety can all be under complete control without government regulation.