We are all aware of the perks, benefits but also drawbacks when it comes to government participation and inquires in industries and businesses.
The most common conclusion we make out of government involvement is that it’s a negative involvement that only worsens the conditions of specific businesses and industries.
Take taxes for example. The governmental-instituted federal and local taxes are often subjects of discussions for both businesses and private citizens. Taxes are seldom a governmental influence that weighs a positive effect with people, especially businesses and industries alike.
We’ve all heard of the nicknames and hatred that taxes has brought to life.
But we’re not here to bash or “hate” on taxes ourselves, or even downgrade international governments around the world.
Instead, we would like to discuss the potential upside of government participation in industries and businesses, to some reasonable extent of course. We would like to convince you of how an industry or a business can benefit from governmental involvement and participation and how all of this can actually turn out to be a good thing,
Governments Are The Real Power
While businesses and industries hold some considerable power when it comes to influence and reputation, it’s ultimately a government in any chosen nation that has the real power over changes and evolution.
Take the United States for example, while many organizations and businesses may be turning billions of dollars in profit every single day, they have little pull in the end when compared with the Congress and White House of America.
Or if you would like to compare a country vastly different and far away from the USA, we can have a look at Sweden. In this Scandinavian country we have nation-wide businesses and industries that account for an immense amount of money. But in the end, it’s the government that chooses how to alter laws (including tax laws, directly affecting said businesses).
The point being is that no matter how much you or any kind of industry or business tries to distance yourself/themselves from the government, you can never really escape them and their regulations.
Governmental Policies Can Offer Benefits
Even though your nation might hold some unbearably steep tax laws that makes a business wonder what they are doing there, the benefits of government policies might also directly affect a business, much like tax laws.
If we take Sweden as an example again, we see some benefits and perks in favor of industries and businesses. Even though the country has some harsh tax laws on businesses and private entrepreneurs, the country’s strong welfare and social security system ensure that every man, woman or child gets a chance at a good life. Free healthcare is also a benefit that affects industries and businesses greatly as accidents, incidents and sickness often occur.
These are but a few mentions that are directly caused by tax laws and regulations, due to government influence in industries. An example of the effect the government has on industries in Sweden is the increased import tax rate and interest, meaning that the state gets more capital to distribute to healthcare and social issues.
Keep in mind that this is only one country that we’ve analyzed so far when it comes to governmental benefits that directly affect industries. What if we started to have a look at the whole world?
First of all, the article would become too long and second of all that’s just too much information in a single sitting.
How Would A Government Effectively Participate In Industries?
We cannot speak on the behalf of every governmental agency or division in every single nation in the world, but we can offer a general theory on how governments can effectively participate in industries around the world, without ensuring a recession or drawback in annual revenue with businesses world-wide.
Keep in mind, this is only a few steps that need to be considered on how a government would act in general when it comes to participating in industries.
Here is a few key steps that needs to be considered:
- A government must understand the need for free trade, without an overload of governmental influence.
- A government can participate in industries to their and their nation’s advantage, as long as the situation becomes beneficial for all including parties.
- Businesses in the affected industries must ensure that they take advantage of the perks and benefits that a government offers if they choose to participate in said industries.
- The results of participating in industries must be beneficial for many people, so ensure a stable foreseeable future.