Hi Billy, I know you probably know and agree with all the arguments I'm going to make, but I feel compelled to spell them out...
On Apr 20, 2010, at 12:32 PM, [email protected] wrote: > Public choice theory has identified the root causes of regulatory failure as > the capture of regulators by the industry being regulated. > > Except, the libertarian argument is apparently that the root cause of regulatory failure is the *existence* of regulations, and that the only necessary and sufficient solution is to simply eliminate regulation altogether. > Piling on more rules and statutes will not produce something different than > it has in the past. Reliance on affirmative principles of truth-telling in > accounting statements and a duty of care would be preferable. Deregulation is > not some kind of libertarian mantra but an absolute necessity if we are to > exit crony capitalism. > I agree that Sunlight is probably the best infectant, but it is hardly the only one. The empirical reality is that humans make irrational choices all the time, and therefore simply providing accurate information doesn't solve all your problems. The reality is that regulation does have a non-trivial cost, but it also provides a non-trivial benefit. There is surely a case for reforming our regulatory environment, because of the valid issues raised here. But the libertarian "solution" is a simplistic and problematic as the statist solution of creating *more* regulations. We really need some fresh, healthy, data-driven alternatives. -- Ernie P.
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