Command And Control Vs Incentive System Essay

When differentiating the two concepts of "command and control" and the "incentive system, it is evident that the incentive system is much better in the long run in terms of regulating financial industries such as banks. The command and control system punishes offenders, which sounds terrific in retrospect, considering all of the scandalous activities that have gone down in the past. However, punishing them may do more harm than what rewarding them will do. By having the government set goals for financial industries, the command and control system certainly sways away from laissez-faire business policy and puts more power into the government and diminishes the free market, essentially not making it a free market anymore because the government can set
However, considering the loan and housing scandal during the recession, regular businesses should be maintained with an incentive system, whereas institutions such as banks are better off with a command and control system, because fear of punishment would prevent another recession. The fact of the matter is, whoever controls the banks, such as the Rothschild family and Goldman Sachs, pretty much control every bank internationally. Without a doubt there is some form of corruption occurring, whether it be loaning out money that simply exists on a computer and not physically or having overseas accounts. Briefly put, even if we did install a command and control system to regulate banks, it would be useless because governments and banks cooperate together, either secretly or in the open. The U.S. Federal Reserve is a private bank, not owned the U.S. It is essentially the central bank of the U.S. and isn’t even owned by the U.S. The reason I mention this is that it is reasonable to assume that the U.S. government and banks are working together to screw everyone out of their