Economics-1-B

Government regulations support big businesses, leaving small businesses struggling so our production is being concentrated in larger and larger companies. Government contracts require extensive paperwork which favors big companies who have the staff to complete it. When I worked for the Area Agency on Aging, we had one company that mowed lawns in the entire nine county area. They charged $56 for mowing a lawn (back in the late 1990’s) when local companies would have done it for far less, but other companies nearby lacked the staff to write government contracts. The company was able to charge that because they had no competing companies offering to do it for less. Competition keeps down prices. Excessive regulation makes it difficult for small businesses to navigate and forces consolidation reducing competition. Larger companies also have higher costs due to having to transport personnel and equipment over long distances and are less likely to be able to respond to customer needs. This is extremely dangerous because it concentrates wealth in the hands of a few, but more important, it leaves us vulnerable to disruptions in production when problems occur. We saw that in meat when the largest meat producer had to shut down due to Covid and later with the shortage of baby food due to the shut down of the largest baby food producer due to contamination at its main plant. In addition, government contracts provide tools for the government to dictate what the company does and how they do it. We are seeing that in our public schools where schools are being pressured to use programs promoting sexual promiscuity and special privileges for Gays in spite of local opposition. America was built on free enterprise, but we are gradually losing it.