Government regulation necessary to prevent abuses of power from "summary" of The New Industrial State by John Kenneth Galbraith
The great corporations of the modern industrial system hold enormous power and influence. Their size and reach extend far beyond the abilities of any individual or group to effectively regulate or control. In this environment, the potential for abuses of power is significant. These corporations have the ability to dictate terms to suppliers, control prices, influence government policies, and shape public opinion through advertising and media control. The primary reason that government regulation is necessary to prevent abuses of power is that the corporations themselves have little incentive to self-regulate. Their primary goal is to maximize profits and shareholder value, often at the expense of other stakeholders such as employees, consumers, and the environment. Without external checks and balances, corporations are likely to pursue their own interests to the detriment of the broader society. Government regulation serves as a counterbalance to the power of corporations. It sets standards and rules that govern corporate behavior and protect...
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