An Examination of how Government intervention creates economic opportunities by creating needs for new products and services. Prohibition, Illegal Drugs, Green jobs, Services, demand, supply,
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Why Government Laws & Mandates Create & Disrupt Markets
1. Why Government Laws & Mandates Create & Disrupt Markets
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Laws and mandates have major changes on the products and services that we
use. Markets for goods and services are created and disrupted. An example of
this is the Prohibition era in the United States. Prohibition was a time when
the sale of drinking alcohol was made illegal by States and the Federal
government. The logic behind the ban was that quality of life would improve
because the consumption of alcohol would decrease. But did this happen?
Nope. Instead the sales of alcohol skyrocketed. Bootleggers became rich by
selling alcohol. All Prohibition did was disrupt the traditional alcoholic
beverage market into a black market. People were able to make a business out
of selling illegal alcohol. The same could be said for the sale of illegal drugs.
The auto industry also created a new market for the energy conscious with the
release of the electric car and the hybrid. These changes created jobs in the
green economy.
2. During my time the dental industry, I noticed a surge in product sales of
Amalgam Separators. This occurred after an environmental law was passed
across the United States; barring Dentist's from pouring amalgam (mercury)
used in fillings down the sewer. Amalgam had to be separated into a separator
and disposed of through special means. Think of commercial waste.
If you want to see what markets will be created and disrupted; look to the laws
and mandates of the government.