Regulation Favors the Elites

Source: Econlib
Published: Oct 12, 2023
Author: Scott Sumner
Post Date: 2023-10-12 00:11:23 by Charles_Byrd
Views: 3162

There are many arguments against government regulation of price and quantity. In competitive markets, regulation moves equilibrium away from the most efficient outcome. Regulation can produce black markets. There are administrative costs associated with regulation.

One often overlooked consequence of regulation is that it adds to the complexity of decision-making. Thus government regulation tends to favor the better informed members of the community, over those who are less well informed.

Click for Full Text!

Post Comment   Private Reply

#1: Vicomte13    To: Charles_Byrd (#0)

That's right. As a securities and tax lawyer, my livelihood depends on the extremely complex intricacies of the securities laws and the tax codes. Get them wrong, and the fines can be astronomical. Therefore, my industry is paid tens of millions by corporations to save themselves billions and their executives, jail. If you are too small or too stubborn to pay for the legal costs, then you pay the costs of having enforcement come down on you mercilessly, for as we have all been taught, "ignorance of the law is no excuse".

Vicomte13 posted on 2023-10-13 12:15:36   Reply   Private Reply