Name: free market vs regulations
Uploaded: 2014-06-18T03:14:25.000Z
Duration: 7 min 29 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

The second conditional

idea in theory, no doubt. if those who created the regulations a) understood every in and

out of the sector they were regulating, b) understood the exact pros and cons of the

effects of the proposed regulations, c) were... unable to be affected in any way by outside

(moneyed) influence and were unable to hide behind the walls of the state, etc, then it

might work great. the problem, though, is that regulation has been "weighed in the balances

and found wanting". it almost always has the inverse effect of the well-intended solution

regulation in the economic sector usually solidifies monopolies. they are corporate

monopolies, and there are usually 2 or 3 dominant corporations in the sector so as to give the

illusion of choice. this is why many (actually, probably most) times, corporations themselves

are behind the regulations; it gives big money unfair advantages backed by violence. if Perdue

or Tyson want to limit competition, they get a law passed that all chickens have to go

through a laundry list of cost-prohibitive "sanitation" exercises, mountains of paperwork,

expensive industrial licenses, etc. this has the effect of walling off any free marketeers

(little guys) that might be able to come in and undercut the big boys. of course, Big

Chicken itself is never held accountable to those regulations. and of course, without

the regulations, the people themselves could vote with their dollar; if Little Guy Chickens

makes a great product, it competes with Big Chicken and  the people win.

you can eliminate lobbying, but there's still going to be the buddy system. Citi asks Smith

to put X restriction on banking, and 4 years later, Smith becomes the CEO of Citi and reaps

the reward. the fact is, regulations on ANY (non-criminal) actions in the economic sector

do not work better than regulation by us little guys via the dollar, and in fact usually work

now, talking about the possibilities in the absence of regulations is where it gets most

interesting IMO. there is an important distinction to be made here between regulations and laws

(the words can be used interchangeably, but ...I'll draw a hard line for the sake of discussion).

laws establish principles like "it's illegal to hurt an innocent people". regulations,

well, regulate the way business is done. I certainly agree that the former is necessary

and required. the latter, though, I am asserting is better left to the "market", or the people.

now, companies can lie in advertising, but the greatest agent of regulation in a free

market - their competitors - will call them out and ruin their reputation (except they

can't do this as it is due to FCC regulations). they can lie about what they sell you and

whether it's dangerous, but they will be taken to court, sued out of existence, and imprisoned

for life for fraud (violation of implicit contract) and injury - this of course only

possible without the government status/protection of "corporations".

companies can build crappy buildings, but they will be liable for injuries and will

have a crappy reputation to go with it, so it is in their best interest to build a good

companies can intentionally make crappy/faulty cars, but without their limited liabilities,

the same things will happen to them. the principles above hold true over and over again. however,

when the state creates regulations that only ten people can die per million cars sold,

then the corporation aims for that number instead of 0, and their actions are legitimized.

my main point here is that the state provides protection for the rich in almost everything