38 Discuss how government intervenes in the success and fail

38.  Discuss how government intervenes in the success and failure of businesses. Are there any recent news events that can support your position?

Solution

38.
Government comes up with the policy initiatives that affect the functioning of the business, the demand for the products and services produced by the business and provide all the necessary support in terms of infrastructure, taxation holidays and subsidies. For example, the USA government came up with the stimulus package of more than $750 Billion after the 2008 financial crisis in the USA. Besides, the government provided financial assistance to the troubled assets by creating specific regulations in the USA. It made the businesses to survive the recession and recover from it. So, government policies affect the success and failure of the business.
In a recent news, the Federal Reserve as a central bank, increased the federal fund rates in the USA and it is the part of making the businesses to grow on their own. It is also a policy that helped the economy in the past, but now, the government as well as Federal Reserve wants the businesses to grow without stimulus package and control the inflation.
Besides, the government intervenes to bring fair and free competition in the business environment and it is exhibited by the anti-trust laws. It helped the smaller players and inventors to stay in the market and grow. Government agencies like SEC & FTC, looks after the affairs of the business environment.