Control Systems & PLC's

Adjustable Regulator

Need for government regulation of Business

INTRODUCTION

Since colonial times, government has regulated business. Government regulation is constantly present in our lives. The government has a presence in many areas, such as public utilities, child labor laws, zoning restrictions, and protecting competition in business through antitrust laws. Government presence has brought about cleaner air, safer cars, fewer drugs, more jobs for minorities, safer workplaces, and more.

WHY REGULATION?

One of the roles of the government is to make sure that the public's interests are maintained and preserved, that is to see that market failure is controlled. Market failure is present due to the following four factors:

Inadequate Information-

The public must have accurate and enough information to make good choices. For this reason, the government makes rules to make sure that this information is available to the public. For example, the government makes rules that all medicines have proper labels with detailed information so the public can make a good and safe choice.

Monopoly-

A monopoly exists when a company can fix prices and keep out competition. This is unfair to the consumer. Thus, the government makes rules making monopolies generally illegal.

Externalities-Sometimes in the course of business, there are negative effects which are not always paid for by the producer or user. Government regulation makes sure that companies take care of the negative effects they produce in their business. For example, government rules make sure that companies that produce pollution find ways to reduce it.

Public Goods-Governments enforce rules to make sure that everyone pays through taxes for goods that all people benefit from. For example, national defense, roads, education and pollution control.

We need government regulation of business for many reasons. First, regulation is important to protect the general public. Secondly, regulation protects small businesses and allows them to grow.

SMALL FIRMS AND STATE REGULATIONS
State and local regulations also play an important role in business. They attempt to regulate in three areas:

1) Controlling entry into business;

2) Regulating competition; and

3) Preventing consumer fraud. States are primarily responsible for regulating insurance, restaurants, banking, liquor sales and professional licensure.
TAKINGS
Local, state and federal governments are allowed to take private property of a citizen to do such things as build roads, dams, and airports among other things. However, the government must pay the owner "just compensation".

Price controls

Price controls are governmental impositions on the prices charged for goods and services in a market place usually intended to maintain the affordability of  foods and goods, and to prevent inflation up during shortages, or, alternately, to insure an income for providers of certain goods. There are two primary forms of price control, , the maximum price that can be charged, and a bottom, the minimum price that can be charged.

Historically, price controls have often been imposed as part of a larger package also employing salary controls and other regulatory elements.

For various reasons governments may wish to intervene in a free market to set prices. Usually prices are set the market forces (where supply and demand differ) but, in some markets governments may want to artificially set different prices.

Minimum support Prices.

This is when the government doesn't allow prices to go below a certain level. If minimum prices are set above the equilibrium it will cause an increase in prices. The EU has used minimum prices for agriculture. It is argued farmer's incomes are too low. Therefore, minimum prices have been used to increase prices above the equilibrium. This enables farmers to get a higher income.

However, the big problem is that this creates a surplus. Therefore, the government has to purchase the surplus to maintain a minimum price. The Common Agricultural Policy became very expensive because the minimum prices encouraged farmers to supply as much as possible.

Maximum Prices

This is when the government wishes to prevent prices going above a certain level. If a maximum price is place below the equilibrium, prices will fall. But demand will be greater than supply there will be a shortage.

The government may wish to use maximum prices to reduce the cost of renting a house.

In  a government-granted monopoly is a form of compulsion by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by legislation or other mechanisms of government enforcement.

As a form , government-granted monopoly is contrasted with a non-coercive monopoly or an efficiency monopoly, where there is no competition but it is not forcibly excluded.

 

Patents

A patent is a set of rights granted by a government or national government to an inventor or his/her assignee for some time in exchange for a public disclosure..

The procedure for granting patents, the requirements placed on the patentee, and the extent of the exclusive rights vary widely between countries according to national laws and international agreements. T

Financial markets;

Not only did we have an economy that was booming, we also had a sense of security in our financial ability for the future.  We may never experience this same sense of financial security again.  We achieved this financial state by having free markets that were pretty lightly regulated as we have thrived as an economy that believes in the Laissez faire theory.  On the other hand as we deregulated the free markets even further, we started making decisions that were not in the best interest of the economy as a whole and eventually led to a financial crisis.  Immediately after our nation's financial meltdown, the government intervened heavily again and now the economy is slowly beginning to recover. So just how much should the government intervene when it comes to our financial markets?  This is a controversial issue that we will look at from two different viewpoints, the Laissez faire approach and the heavy government intervention approach.

Some argue that our economy would not have been what it became without having a free market system.  They are absolutely right.  Free markets and low barriers to entry into business encourage entrepreneurship.  That is what has made our country so great, the ability to have a dream and pursue it knowing that it is something well within our reach if we want it enough.  Other countries just do not inspire that same self confidence as opportunities are not as common as they are here.

The more regulations that are imposed, the harder it is for entrepreneurs to enter the business world which forces them to stay within a company and this restricts creativity within the person that has an entrepreneurial spirit.  Also, heavier regulation on the markets makes the saying "The richer get richer while the poorer get poorer" more of a reality by limiting opportunities to the self starter to break out into the business world on his/her own.  Just look at China, though they have a booming economy, their country has one of the worst distribution of wealth within their economy.

Another argument that is made on behalf of the Laissez faire approach is the law of supply and demand.  This is a very true fact of the markets.  Prices and supplies of goods will always be fair as long as we have free competitive markets.  And these free competitive markets are encouraged by lighter regulation by making the transactions more natural.  With heavier government regulation the law of supply and demand is being manipulated and no longer is as natural as it should be in order to work its magic.  An example of this is with the trade tariffs that are placed on imports and exports.  This form of government intervention has an impact on the decisions businesses make from where to manufacture their goods to what countries they should deal with as far as importing and exporting.

People in favor of more government regulation believe it is the regulations that improve the economy.  They feel that since people naturally have their interests in mind above all else, there needs to be government intervention as they would put in place regulations with the needs of society as a whole rather than just one individual.  An example of this would be how the owner of a company may choose to dispose of toxic waste.  If there were no government regulation, the owner of the company may decide to do it the cheapest way possible by dumping it into a river or burying it, but since the government has regulations to protect our environment and society, this is not a possibility without severe consequences to the business.

Government is not running a business that is in the market therefore, it is not impacted directly by some of the regulations, which allows them to have an unbiased approach to their regulations.  Whatever benefits the government will, in one way or another, benefit society. The only downfall to this would be when you have corrupt officials, which is not as rare as it should be unfortunately.

Since there are such strong and valid arguments to both of these viewpoints, it is not possible to say which one is right.  They both are right and we just need to have the appropriate mixture of both in order for an economy to run smooth.  The people making these decisions are just like us, they try things if they do not work, they stop see what was wrong and adjust.  That is all we can do as well.  At the peak of the economy things were so good for everyone that it felt like what we were doing was right.  Sure now we know it wasn't, but it was not that obvious while we were going through it.  We are like the toddler that got burnt with the hot stove, it hurt and we will never make that same mistake again until the next generation.

There is none. The advantage is on the government's side. Keep in mind that a government regulation is a set of rules written, enacted and enforced by government officials for the purpose of controlling men's actions in a given enterprise, whether manufacturing a product (such as Microsoft), or offering a service (such as Certified Public Accountants). 

Regulatory agencies exist at both the state and federal level. And today there are thousands of them intruding into Americans' lives in countless ways. Government regulations impact a variety of businesses in a variety of ways and consequently impact their customers---from higher than necessary prices forced upon the producer by government fees and licenses to wasted time and effort of workers attempting to follow "guidelines."

This is true so long as one is using words in their proper sense. If however, you're talking about graft, corruption, pull, bribery or other fraudulent practices, then one might say that if a man were to seek government regulation of his actions, it would be to harm a competitor. That is an "advantage" only if you choose to be immoral.

Administered price

An administered price is in general a price which is either set (fixed) by legal statute or by a standard procedure formulated as an official policy, instead of being determined directly by supply costs and market demand. Even if supply and demand conditions change, the administered price may therefore stay the same, or it may change in the opposite direction - if e.g. demand falls, the administered price is kept the same or raised, to subsidize the supplier and protect his income, or alternatively the price is kept constant to protect the consumer/purchaser.

Keeping in view the interests of the farmers as also the need for self-reliance, Government has been announcing minimum support prices (MSP) major crops.

There were a number of inter-related developments, such as prices of food grains in the primary grain markets remaining below MSP in many parts of the country, near

Elimination of private trade from the grain markets in the major producing and procuring

All these resulted in a buildup of food grain stocks.

It should stop altogether making up incentive/punishment programs to get businesses to do what the government wants them to do. And it should stop trying to "level the playing field"; which, of course, is just another way to intervene on behalf of their political allies.

As a small business owner all you want is predictability and stability from your government -- not more carrots to chase or sticks to avoid. The more small business "incentives" they legislate, the more chaos and distortion they inject into the business environment.

However, when government picks and chooses which industries and businesses it will promote and support, and develops "programs" to appease special interests and manipulate outcomes under the guise of "helping small business," then it has crossed a not-so-fine line.
Every new business incentive/punishment program the government creates automatically spawns people intent on "gaming" the system, and builds entirely new -- otherwise useless -- entities designed to help more people participate in that gaming.

Then more legislation is passed to address the problems government just created, more gamers are generated, and so on and so on. You almost have to play -- at least defense -- to survive, and that just shouldn't be the case, especially if you are playing by the established rules.

 

About the Author

Professor of Finance, Hawassa University,Hawassa,Ethiopia

Co-author- Ahmedin sherafa,Coordinator for Master's programme

Hawassa University,Awassa

Fuel pressure regulator.?

i just received my jet 61500 adjustable fuel pressure regulator for my 1994 chevy k1500 350 TBI now my question is how do i measure the pressure at the injectors stock is something like 9-13 psi i want to set it between 13-14 psi but im not sure how to measure it. Also does it have to be running in order for me to check the pressure or can i have the TBI loose to move it to make room for some sort of gage?

Some of the companies selling those regulators offer a fitting that goes at the TBI so you can test pressure from there. Otherwise you need the adapter that goes where the filter is to test pressure which you'd get from a tool supplier. When done testing you have to put the filter back in place so the fitting is much more convenient. You'll need a gage for either. Normal EFI pressure gages read much higher than TBIs operate and I use a separate lower pressure gage for TBI for more accuracy. So you might choose a gage that only reads to say 20psi that shows 1/4 increments. Yes do it running or jumper the pump on at the relay.

Adjustable Fuel Pressure Regulator aka AFPR install - Part 1/2