Antitrust Laws
Also known as competition laws, antitrust laws are rulings created by the government of the United States to protect the buyer from predacious practices by businesses. These laws ensure that competition is fair in an open market economic world. The evolution of these laws has occurred along with market evolution, actively protecting the economy from would-be monopolies and distractions to the receding tides of the ebb and competition flow. Antitrust laws give the government the authority of blocking particular mergers, and in some cases, the government has the power of breaking up large companies into smaller business organizations. I agree with this government intervention as it is a way of protecting the consumers from being hurt by businesses.
One advantage of antitrust laws is that the government restricts monopolies and cartels hence eliminating discrimination, predatory pricing, price-fixing, and favoritism. Also, antitrust laws help in creating a free market, with no artificial influence on prices, supply, and demand. The last advantage is that these policies ensure discipline in businesses. Therefore creating an economy where consumers are protected and sellers offer the best products and a suitable price. The better run and the sincere companies prosper in this economy.
The only disadvantage of antitrust laws is that some companies/markets find them anti-business, and the severe taxes harm their performance. They feel that the rules hurt the very competition that the government claims to uphold.
Monetary Policy
Monetary policy involves actions and communications by the central bank that control the supply of money. This supply of money is in the form of cash, check, credit, and mutual funds for money markets. Credit is the most significant among these forms of money. Credit loans are mortgages, bonds, and investments. The monetary policy leads to an increase in the liquidity of creating economic growth. The actions of monetary policy have the potential of making the economy better off, as opposed to worse off. By reducing inflation, these actions prevent inflation. Central banks use their reserve requirements, interest rates, and government bonds that should be held by banks. These tools influence the lending system of banks. The supply of money is also affected by the volume of loans.
If this policy is well managed, then inflation would be very low. This is good for the rapidly evolving economy in the world because people can see many investments in the future. It also encourages employees to be paid better salaries. However, the lack of control of the monetary policy can make the life of people a living hell. It would adversely affect the economy. Thus, the implementations for controlling monetary policy should be well designed. If this scheme fails, hyperinflation could occur. Hyperinflation causes an increase in the prices of all products, as well as services.