Businesses are probably more regulated today than they have ever been, not just in the UK but around the world. Indeed, I would say that most businesses and industries are now over-regulated. This trend may not be inevitable, but there is not much sign of it slowing down, let alone reversing. With respect to regulation, what I expect and what I hope for in the future are not quite the same. I believe we should risk a bit of under-regulation for a change!
Why over-regulation?
Modern economists sometimes refer to a straw man of ‘perfect competition’ based on perfect knowledge and zero transaction costs. This leads us to regard any shortfall from such an unreal state of affairs as ‘market failure’ and to assume that governments can correct it, but can they?
See full Article.
Posts
