Role of government in regulating economy from "summary" of The Great Transformation by Karl Polanyi
In the modern economy, the role of government in regulating economic activities is of utmost importance. Governments play a crucial role in ensuring the smooth functioning of markets, protecting the interests of citizens, and maintaining social order. Without government intervention, markets can become chaotic and unstable, leading to economic crises and social unrest. Government regulation is necessary to prevent abuses of power by economic actors, such as monopolies and cartels. These dominant players can manipulate markets to their advantage, stifling competition and harming consumers. Governments must step in to enforce antitrust laws and promote fair competition, ensuring that markets work in the best interest of society as a whole. Moreover, governments have a responsibility to protect workers and consumers from exploitation. Without regulations, employers can exploit ...
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