Analyzing the Role of Government in Business

10:51 PM

Today in our Business Ethics class, we discussed about the role of government’s intervention in the society. Pro free market supporters believe that a market that is free from government intervention best protects individual rights and freedom. They do believe that supply will automatically meet demand and that government only interrupts the efficient movement of market. On the other hand, anti-free market people argue that the free market system promotes injustice and that free market will only work in markets with pure competition.

For me, I actually agree with the proponents of anti-free market. Government is made in order to protect each individual’s right, and if we omit the government in the market, suppliers will tend to abuse consumers since they are most concern only with profits. Best example is the zoning restriction of the government, wherein they designate residential areas free from commercial or agricultural use. If we are to think of it, considering that businessmen have full freedom with no government restrictions, we might have a farming land in the center of a business district or a smelly poultry beside our house, and that is ethically inappropriate.

In order to assess further in the class, we take Brian’s Franchise as our case study for this topic.

Image taken from: www.news.vice.com/article/medical-marijuana-patients-are-getting-fired-and-theres-not-much-they-can-do-about-it

Brian is an expert in planting and farming marijuana indoor. During that time, marijuana production has been a huge hit to US consumers, becoming the largest crop at that time. Brian decided to drop out school and start focusing in his marijuana indoor business. However, given its negative and addictive effects to consumers, the government imposed Campaign Against marijuana Planting (CAMP) and Green Merchant. Brian was then forced to sell his business and move to Amsterdam.

In that case, we can see that the government affects Brian’s marijuana business. Proponents of free market can argue that the government did not protect Brian’s right to establish a business he likes. However, this is for the betterment of the society. It is unethical to sell something that has a negative impact to its consumers.

For me, the best alternative course of action is for Brian to establish a new crop business, and leave marijuana in the hands of the government. Usage of marijuana should only be available for research and medicinal purposes. If marijuana has proven effective for health issues, it should be strictly supplied only to those who really need it and the government should determine its procedures in selling, since this product is prone to be sold in black market. Government should establish restrictions since it is its primary duty to protect the welfare of the society.