United States: Regulation of Business Book Report

Government-Business Relations 1004 PPP -- Reading Report

Tutorial (e.g. Monday 10.00am-11.30am):

Reading full reference

Wilson, G. (2003). Business and politics: A comparative introduction. 3rd ed. New York: Chatham House Publishers. Chapter 2. "Business and Politics in the United States," pp. 27-57.

Main point(s) made by the author(s)

In contrast to modern European democracies, the United States has embraced a form of capitalism that is extremely hostile to proactive social welfare policies. Within U.S. culture there has tended to be a more uncomplicated celebration of such values as individualism and self-reliance. Even the Democratic Party, which is currently considered the more liberal of the two major governing parties, is less supportive of comprehensive social welfare policies such as universal healthcare vs. European nations. The U.S. has a very weak welfare state, one of the weakest in the modern industrialized world. The U.S. also has a federalist system, which accords considerable power to state governments vs. The federal government. States have great discretion in managing their tax systems and social welfare programs, even when they receive federal funding. The U.S. version of government reflects a belief that capitalism and democracy are virtually synonymous and inseparable, with one always requiring the other in order to enhance the government or the economy's optimal efficiency.

Evidence and examples used

The author uses case studies of recent companies to support his thesis. He compares how the auto industry has evolved in European nations and Japan vs. The United States, in terms of government intervention in the economy, specifically drawing upon the practices of global brands such as Honda, Mercedes Benz, and BMW.

The author notes how businesses have a great deal of leverage over politicians due to their lobbying efforts. There is a microcosm of power that exists on K. Street, the street in Washington DC where most lobbyists reside. Businesses are often in a constant struggle to influence regulations which can have a critical impact upon their bottom lines.

Strong and convincing parts of the text

The author makes a convincing case for the degree to which American values such as independence and the ideal of the melting pot have created a uniquely American brand of modern democracy. Americans are taught from a very young age about the hardships that were endured in founding their country. Self-reliance vs. community-based participation is valued. In general, the regulatory system in…