Importance of the Legal System

Our legal system cannot completely ensure order and stability. I believe it can predict the level or stability and fairness through trial and error. When I think of the legal system and ensuring order I think of police enforcing laws and regulations, attorneys, judges and a jury. When I try to think of legal regulations on the business side that ensures order and stability it is a bit more challenging for me. There are laws for every aspect of a business to keep businesses running smoothly without the unnecessary chaos.

Tom Petters is just one business man that tried to swindle the legal system. He constructed a scheme that would lure investors into thinking they were funding a company based on millions of dollars in purchases that never really occurred. Creating false bank statements and phony telephone calls were ways to deceive investors into thinking their money was being used appropriately. Petters admitted to cheating on his taxes which should have been audited and caught. Tom Petters and co-conspirators were convicted of mail fraud, wire fraud, money laundering and conspiracy in connection with their operation of a multi-billion-dollar Ponzi scheme.

A stable and predictable legal order is imperative for personal freedom and economic prosperity (Abram, 2011). Everyone benefits when they know the laws and can predict the stability. People and businesses invest their time based on the predictability.

References

Abram, T. (2011, October 28). Perry’s Important Message - A Stable and Predictable Legal Order | FreedomWorks. Retrieved May 8, 2013, from http://www.freedomworks.org/blog/teda/perry%E2%80%99s-important-message-a-stable-and-predictable

USDOJ: US Attorney's Office - District of Minnesota. (n.d.). Retrieved May 8, 2013, from http://www.justice.gov/usao/mn/petters.html