Ortegon 1

Carolina Ortegon

Oscar E. Martinez II

ENGL 1302-217

30 March 2024

Business Industry based on American Economy

The American economy is a mixed economy. This economic system combines elements

of free market capitalism with government regulation. It is known as the combination of

capitalism and socialism. One of its characteristics is that capitalism permits private individuals

and companies to own and manage their resources. Market forces determine prices, production,

and distribution of goods and services, and to control the public goods. The American

government intervenes in several ways despite its capitalist roots: It upholds the public's safety,

safeguards consumers, and ensures fair competition as well as providing social safety nets like

Social Security, Medicare, and unemployment benefits. To keep the economy stable, the Federal

Reserve controls the money supply and interest rates, and it's in charge of the roads, bridges, and

other infrastructure projects that are funded in order to promote economic expansion. Through

practice and education, it is understandable how this matter can be very complex, and

sometimes, it can get hard to control such an extensive system. Consequently, the same system

that makes the American economy flourish is the one that allows it to fail at times. The U.S.

government should put more effort into preventing the monopolization of companies because

failure to preserve competition between businesses results in a decrease in product quality, an

increase in the ability of businesses to influence politics and governance, and a lack of corporate

social responsibility (CSR) on behalf of companies.

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Competition between companies

Monopolization can impact the nation's economy; one of the aspects that it impacts is

competition between companies. Product quality often decreases by monopolizing a market,

which means getting rid of the competition and leaving the consumers with very few options to

choose from. This can impact the economy by abusing their power to increase prices to

customers, leading to less innovation and higher inflation. It also affects the economy because

limiting efficiency, innovation, and healthy competition contributes to market failure. That is

why the U.S. government should put more effort into preventing the monopolization of

companies. There are laws like the Sherman Antitrust Act that outlaw unilateral actions and

anticompetitive agreements that monopolize or seek to monopolize the relevant market.

However, there needs to be more regulation to guarantee its effectiveness. For example, as stated

by Simbolon, Indonesia implemented a law that relates to this matter,

Business Competition Law No. 5 of 1999 creates a favorable business environment by

regulating the conduct of business actors in carrying out their activities appropriately and

correctly in compliance with the regulations available (2).

This means that the nation's economy is likely to be favorable if business actors conduct their

operations effectively and refrain from engaging in mutual monopoly practices. The beneficiaries

of this situation include the business actors themselves, other business actors, and, of course, the

state economy, which will grow and become more competitive internationally. Thus, creating

laws to guarantee that businesses operate correctly needs to be a focus for the United States.

Doing so will help the economy and, more importantly, the people.
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Monopolization in Businesses

Corporate Social Responsibility

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Works Cited

Johnson, Justin P., and David P. Myatt. “Multiproduct Quality Competition: Fighting Brands and

Product Line Pruning.” The American Economic Review, vol. 93, no. 3, 2003, pp. 748–

74. JSTOR. http://www.jstor.org/stable/3132115.

Konstantinos Stylianou. “Can Common Business Practices Ever Be Anticompetitive? Redefining

Monopolization”. American Business Law Journal Volume 57, Issue 1, 169–221, Spring

2020. https://onlinelibrary.wiley.com/doi/pdf/10.1111/ablj.12157

Simbolon, Alum. "Prevention Of Monopolistic Practices and Unfair Business Competition

Through Business Competition Supervision." Journal of Legal, Ethical and Regulatory

Issues 22.1 (2019): 1-7. ProQuest. https://www.proquest.com/docview/2238482699.

Victor Manuel Bennett, Lamar Pierce, Jason A. Snyder, Michael W. Toffel. “Customer-Driven

Misconduct: How Competition Corrupts Business Practices”. Management Science Vol.

59, No. 8, August 2013, pp. 1725-1742. JSTOR. https://www.jstor.org/stable/23443830.