The Regulative Role (continued) - 9 |
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Governments also intervene in markets to ensure that employees are not exploited by
their employers. You cannot be forced to undertake a job that requires protective
equipment, without that protective equipment. You cannot be forced to work long hours without
a rest break. Without the protection of government legislation, many employees have been
forced to work in unsafe environments, and when accidents have occured, employees have not
been adequately compensated for injury.
Governments, therefore, have a regulative role in our economy. Governments must intervene
in markets to influence what is produced, and the quality and quantity of
production. The Federal Government has passed the Trade Practices Act and both it and
State Governments have passed Consumer Protection legislation to assist in the
proper function of markets. we shall learn more about these Acts in later readings.
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