An Ideal Situation

In: Business and Management

Submitted By sarava1811
Words 835
Pages 4
Saravanan Panneervel PCA 540‐01 (TTH) Argumentative Essay Draft 1 (12th Sep. 2012)

An Ideal Situation: ’ Free Enterprise System Along With Regulated Banking’ The U.S. economy is a free enterprise system which means each individual is entitled to earn profits, own private property, compete in a market place for business and make economic decisions for themselves. In such a system some people argue that regulation of economy and economy driving entities, such as banks, may affect the U.S. free enterprise system. Henry Davis Thoreau, an influential figure in American thought and literature and a proponent of laissez faire, said: “That government is best which governs least; and I should like to see it acted up to more rapidly and systematically. Carried out, it finally amounts to this, which also I believe—‘That government is best which governs not at all’; and when men are prepared for it, that will be the kind of government.” If we speak of banks in the context of regulation or deregulation, I feel that regulation of an economic entity like a bank would not only protect depositors but also secure national monetary stability, preserve an efficient and competitive financial system and protect consumer interests. Businesses and individuals hold a significant portion of their funds in banks and use banks primarily for carrying out financial transactions and issuing and realizing cheques. For conducting such transactions they must maintain a deposit with a bank. Although partial safety of each deposit account is provided through cash and balances in the federal reserve. Part security of a…...

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