Essay: The Consumer Product Safety Improvement Act of 2009

20 Jul

Essay: The Consumer Product Safety Improvement Act of 2009

Government intervention is important in regulating the industries in a country. However, overregulation is come of the industries impact the functioning and growth in such industries.

A good example in this case is the Consumer Product Safety Improvement Act of 2009 intended to regulate the toy industry depressing growth in the entire industry. Such laws make it only possible for large companies to prosper while small companies quit. The effects of the recession period on the health of the economy instill fear in consumers limiting purchases on luxuries and big items. Consumption reduction reduces the GDP of a country (Mohr, 2012).

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