DQ 5 Essay Example | Topics and Well Written Essays - 500 words - 1

DQ 5 - Essay Example This formula of economic working rests on three fundamentals; property, competition, and trust (American Government 2004), and especially the last two postulates. What the Enron-Arthur Anderson case has shown us is the flaws, or rather, the weak points of such an economic system, which depends so much on subjective, non-regulatory postulates as trust and promise keeping. The competition, which forms the spirit of liberal economy means that companies and businesses would, by hook or by crook, try to gain an edge over their competitors, and increase their clientele. Although the clause of trust is there precisely to control such a monopoly and twisted shape of affairs, in a market where every one is trying to gain the upper hand, this control check tends to be weakened. However, the Bill of Rights prevents governments to perform otherwise. The only way to deal with such a bonding between companies and businesses, and the violation of trust is to apply much stricter measures and checks on businesses to ensure they are following the law, even if there may be other vested interests of influential bodies, like the Congress (American Government 2004 ) in their operations. Laissez Faire is French for leave alone (American Government 2004). This concept of freedom has been imbedded in the economy and the business sector of the nation, especially after the Civil War, when government intervention was seen as a hindrance in the general development of the public, while only a few corporations benefitted from government subsidies. Basically, it means that if people are left on their own, economic as well as social development would be incurred, because only those