It was the day of September 29, 2008. The Dow traders stood still and watched in terror as they saw red letters popping up everywhere on their stock portfolio. It was not long until they realized their nightmares had turned into reality. Investors woke up on this day to find out that their brokerage account balance had taken a nosedive. A typical American fortune halved on this day, sending millions of people on the streets, leaving them there to suffer.  

September 29, 2008, was the official start of one of the worst recessions the world had experienced, leading to the loss of over 2 trillion dollars in the global economy. This crisis brought insecurities and caused both physical and economic depression among many people. Today we look back and wonder why this recession even happened in the first place? The president of World Money Watch says, "This financial crisis was primarily caused by deregulation in the financial industry (Amadeo 2022)". Governing bodies exist in every economy, and they have the responsibility of managing things daily and keeping the economy in control. They must craft rules and input policies in the market to secure a fair and free economy where both businesses and citizens can strive. A poorly designed regulatory system was the cause of the tragedy, like the 2008 financial crisis promoting human suffering.  

Regulatory policy scholars say, "Market economies need clear rules to function efficiently. Without a legal framework establishing and enforcing property rights and the "rules of the game," our free enterprise system could not exist (Dudley & Brito)." The economy is an essential system that exists, and this system has the potential to improve our lives but also destroy our lives drastically. When a problem occurs in the economy, it has a ripple effect that has negative outputs impacting every sector of our lives. We have to remember governments input regulations to "fix" more than "worsen," and through policies, it can help "correct" prices, reducing the risk of a future tragedy which we might be able to prevent. 

"Regulations underpin markets, protect the rights and safety of citizens and ensure the delivery of public goods and services ("OCDE")." Regulations exist not only to prevent future crisis, but they are the bases of safety or a"normal" life, as some people refer to it. Regulations in the economy arebimplemented to protect us from arbitrary, biased, and dishonest decisions, which allow for a society where freedom strives, and people live free from errors and individual judgment. Regulations are the primary vehicle that keeps the market in control and are the reason why the economy is referred to as a "sophisticated" system and not a "deranged" system.   

 As a practical matter, government interventions in the economy can smooth bumps and speed up the economic road. When in a recession, government efforts such as reducing taxes, reducing interest rates, and increasing the money supply can fuel the economy, speeding up recoveries, ultimately erasing human suffering. Regulations exist to combat an unfair and non-equatable economy where the wealthy are superior. Taxing and spending policies can create opportunities for society's more "unfortunate" side, providing them the tools to participate in the market.  

Some economists and officials consider regulations as something that takes away individual economic freedom, promoting the implementation of a totalitarian system. These people advocate for a vigorous free market where businesses can operate with minimal interference. There is research to prove that a market economy is the best form of the economy leading to the highest economic growth rate. A free enterprise indeed promotes a well-crafted system that leads to better quality products, lower prices, and new technology, which fosters growth, further improving society. If planned with caution, "[F]ree market system produces goods and services better than any alternative (Clark 2019)" says the Director of the Bush Institute. While a free-market economy has many benefits, it usually tends to a more inequitable distribution of wealth, leading to corruption and an overall unstable society. A free enterprise can sometimes be driven exclusively by business profit motives. "Even though the primary goal of any business is to generate profit, such an objective should not be prioritized over the needs of workers and consumers (CFI)."

In a rapidly moving industrial economy, implementing balanced and fair regulations is becoming a challenge. With technology developing much faster than the speed new policies are rewritten, some rules are crafted with little thought or analysis, distorting market forces instead of improving them. Governing bodies and policymakers must always consider the principles-based regulatory approach. This approach is named the outcomes-based regulations since these regulations are crafted with the outcome in mind. Outcomes-based regulations are drafted with a high level of generality, stating overarching requirements that can be applied flexibly in a diverse range of circumstances. They are primarily behavioral standards ensuring the management of conflicts and fair treatment.      

To all policymakers out there, I ask you always to consider the effects new policies might have. Please create policies that are necessary for a healthy financial system and not policies that diminish economic performance. Please craft meaningful policies based on fair principles and always work towards a better society.