Ron Paul: The Moral Hazard of Regulation

Discussion in 'Economy' started by GigiBowman, Nov 3, 2008.

  1. GigiBowman
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    GigiBowman Active Member

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    The Moral Hazard of Regulation

    Since the bailout bill passed, I have been frequently disturbed to hear “experts” wrongly blaming the free market for our recent economic problems and calling for more regulation. In fact, further regulation can only make things worse.



    It is important to understand that regulators are not omniscient. It is not feasible for them to anticipate every possible thing that could go wrong with whatever industry or activity they are regulating. They are making their best guesses when formulating rules. It is often difficult for those being regulated to understand the many complex rules they are expected to follow. Very wealthy corporations hire attorneys who may discover a myriad of loopholes to exploit and render the spirit of the regulations null and void. For this reason, heavy regulation favors big business against those small businesses who cannot afford high-priced attorneys.



    The other problem is the trust that people blindly put in regulations, and the moral hazard this creates. Too many people trust government regulators so completely that they abdicate their own common sense to these government bureaucrats. They trust that if something violates no law, it must be safe. How many scams have “It’s perfectly legal” as a hypnotic selling point, luring in the gullible? Many people did not understand the financial house of cards that are derivatives, but since they were legal and promised a great return, people invested. It is much the same in any area rife with government involvement. Many feel that just because their children are getting good grades at a government school, they are getting a good education. After all, they are passing the government-mandated litmus test. But, this does not guarantee educational excellence. Neither is it always the case that a child who does NOT achieve good marks in school is going to be unsuccessful in life. Is your drinking water safe, just because the government says it is? Is the internet going to magically become safer for your children if the government approves regulations on it? I would caution any parent against believing this would be the case. Nothing should take the place of your own common sense and due diligence.

    continued: Congressman Ron Paul - The Moral Hazard of Regulation - Texas Straight Talk
     
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  2. Skull Pilot
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    Skull Pilot Platinum Member

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    that's gonna fall on deaf ears here Gigi.

    More government control is what most of the folks here want.



    PS when do you break out the naughty Santa avatars?
     
  3. GigiBowman
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    GigiBowman Active Member

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    one holiday at a time. Naughty Thanksgivng comes first :eusa_angel:
     
  4. Diuretic
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    Diuretic Permanently confused

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    You do know "regulation" and "government control" aren't synonyms don't you?
     
  5. Skull Pilot
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    Skull Pilot Platinum Member

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    go pick nits with a liberal
     
  6. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Yeah I don't think anyone really even bothers to read any articles by Ron Paul or from the Mises institute around here. You'd think at least a few conservatives would be interested in free market economics around here.
     
  7. Skull Pilot
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    Skull Pilot Platinum Member

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    i know they don't I've posted many that went right to the bottom of the list. People would rather talk about BHO's aunt lunie or whatever her name is.
     
  8. GigiBowman
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    GigiBowman Active Member

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    So since we're on a board with leftwingnuts and rightwingnuts...what does that make us?

    leftoverchickenwings?
     
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  9. xsited1
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    xsited1 Agent P

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    This reminds me of the time people were blaming the California rolling blackouts on deregulation. And many still believe Supply-side Economics is a failure despite the enormous amount of data that proves it works. People don't care about the truth. They just want their team to win.
     
  10. xsited1
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    xsited1 Agent P

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    Patriots
     

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