The Good Side of Federal Regulations

How can anyone get it so backward? Regulations don't "restrain" dominant companies, they often are the result of dominant companies using regulatory agencies to make entry harder. What's worse is when there is a "bootlegger and Baptist" situation in which activists campaign for the same regulations that incumbent members of industry want. This attenuates innovation, not promotes it. New technologies replace old when they build better products, it has nothing to do with regulation. Getting rid of regulations is difficult, this is precisely why retrospective review dosen't work, neither incumbent firms nor agencies want to get rid of old inefficient regulations.

We should get rid of subsidies and special tax breaks, however. But as long as their is the government ability to grant them, I suspect they will be with us.

Regstudy of VA 8:40AM May 31, 2012