Obviously, we live with and depend on business corporations to provide us with what we need. Competitive markets encourage innovation and invention to our benefit.
What motivates these corporations?
According to Milton Friedman the only purpose of a corporation is to make a profit for the shareholders.
There are some well-known companies that pursue a broader and socially responsible agenda: Patagonia and Ben & Jerry’s are prominent examples.
But corporations are run by a variety of people who sometimes make decisions that harm the common good. Boeing’s introduction of the 737-MAX and Purdue Pharma’s promotion of highly addictive OxyContin are recent lethal examples.
Social responsibility in words and deed not withstanding, can we rely on the conscience of a corporation to make tough decisions which might subtract form their profits? No, obviously!
Regulations are needed to protect us, because of the very nature of a corporation. Regulations can impede profits, and can be contrary to a corporation’s mission in many cases.
The EPA (responsible for our clean air, land and water based on the best available scientific evidence, administered and enforced effectively and fairly) has rolled back controls for heat trapping methane emissions. Methane is 84 times more destructive than Carbon Dioxide.
Corporations and their well-paid lobbyists exert immense and constant pressure on the US congress and agencies to minimize laws and rules that affect their bottom lines.
The American Petroleum Institute, which represents both large and small producers, supports the recent EPA rollback of methane emission controls authorized by the Obama Administration in 2016.
The big players like ExxonMobil have invested in the necessary controls and see that as a strategic advantage over the smaller producers. So, they support the controls. But are they looking out for us or only their shareholders?
Profits / Regulations, A Balance
The idealized concept of a free market has some dark corners. Ask the families of the 346 people killed in the 737 MAX crashes or the thousands affected by opioid overdoses.
The free market needs regulation
which doesn’t just inhibit,
but is effective, efficient and fair.
Much as we can resent the power of our government, I believe that without such regulation the power-hungry will keep rising to the top.