Regulations Shmegulations

Government regulations are intended to provide safety for citizens, or so the story goes… The safety can come in many forms. It could be regulations for automobile, train, or airplane safety. It could provide safety in the form of health codes. Government can also create regulation by requiring licensing for individuals and business.

So obviously regulations and licensing are business models for government. Aside from passing laws, “governing” is about putting mandatory controls in place. Licenses are easy to understand. The government takes rights away and sells them back at market rate. But it gets a little more interesting with regulations.

What does government regulation actually provide? A minimum requirement for implementation of a product or service. Most see regulations as protecting consumers. In reality regulations protect corporations from litigation. If there is loss of life from a train crash, or some other failure resulting in the loss of life, how can a corporation be negligent if they met government regulations? Regulations are created by government collaborating with the industry they are imposed on.

Regulation can also be a great barrier to entry for small business, as in the case with Internet Service Providers (ISPs). It is impossible for competition to exist in the ISP game. It is way too complicated and expensive to become an ISP, as a result we are stuck with very few options. If you could choose from 10, 20, or 50 ISPs, would Net Neutrality be a concern?

Patriot Act, Affordable Care Act, Net Neutrality… All lies. They all do the opposite of what the name implies. Government by design can only add restrictions. They legislate for their interests, not ours. The free market creates what is demanded. What do you imagine a world with no regulations or licenses would look like?