There has always been a debate around the role of government in providing regulation. Some people believe regulation is an essential part of the economy in order to protect consumers from being exploited or mistreated.
Others feel regulation unnecessarily increases costs for companies and this makes goods and services more expensive for consumers. Those who are against government regulation argue that markets should be ‘deregulated’. Deregulation involves the removal of laws (or regulations) controlling specifi c markets.
Case Study The Taoiseach’s Policies
Sarah Feeney is very aware of her election promises, but she also needs to reduce the government’s defi cit. She has decided to do the following:
Fiscal policies • Increase income taxes for the wealthiest tax payers in the next budget.
• Keep corporation tax at the same level because she does not want to discourage entrepreneurs who are essential for growing the economy.
• Raise more money by raising taxes on cigarettes and alcohol. ‘This will also have health benefi ts,’ she says.
• She is giving a bigger budget to the Revenue Commissioners to catch and prosecute tax evaders who are not paying their fair share of taxes.
Monetary policy • The Taoiseach can’t do anything because the Irish government no longer has control over monetary policy. This is now controlled by the European Central Bank.
Regulatory policies • Stricter laws against pollution and environmental damage. • More information for consumers so that they are aware of their legal rights.
