This really comes down to a question of ethics and beliefs. You could argue that factory farming should be banned because it is inhumane to animals, purely for human gain (i.e. cheaper food), it is terrible for the environment (leads to pollution) and is bad for local farmers (cheap food from factory farming will drive out the local farmers).
Yes, the government should step in and increase the regulation of factory farming. Local farmers need to be protected by agribusinesses, otherwise they will go under. The environment is a concern also and government policy must be in place to protect it. Environmental degradation will be costly to all in the long-run. Furthermore, animals need protection. Factory farming often results in the inhumane treatment of animals such as keeping them confined and injecting them with chemicals.
To a certain extent The Meatrix is a fair depiction of what occurs in the meat industry. There are certainly are many instances of animals being treated badly, animals attacking one another due to confinement and the effect of pollution that occur in today's industry. The Meatrix is a good movie to get people aware of the issues of factory farming however, not every instance is so extreme.
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