Why Regulations Are Bad For Everyone.

I think it is very important to have discussion over the role regulations should have in our lives. It seems that we are content with whatever the major government regulation agencies do and ultimately rule on. It seems that most people don't think twice about the implications of having government regulators and exactly what and why they regulate. I don't have a problem with standards that should be followed by private companies but I do have a problem with "standards" forced by the government on private companies. Standards are good but regulations set forth by government agencies are bad for everyone, and I hope to show you why.

Government agencies like the EPA, FDA, OSHA, and many others that enforce regulations on the environment, food, drugs, saftey, minimum wage laws, work age laws, and so many others seem to have our interest at heart, or so they say. But what exactly does this do to the market or to the consumers? Does it actually help consumers or does it hurt them?

Again I'll mention that I do want standards when it comes to these very things, just not at the point of a gun.

When we typically talk about regulations our brain is instantly hard wired into believing they're good and are to protect us. Discussion otherwise is usually looked down upon.

We don't typically talk about how these certain regulations come to be. We don't talk about who is behind the creation of these regulations. We don't talk about the incentive these people have in creating these regulations. We don't talk about how you're ultimately hurt with these regulations.

It comes down to one simple idea, so simple it is easy to let is pass our eyes. This is why you see those lobbying for new regulations are directly connected to large corporations. As a large corporation who has millions if not billions of dollars that can be used to pay for the costs of regulations it doesn't matter if they come into law. The idea is then that since these large corporations can already pay for them it is easier to snuff out competition through enforcing regulations than it is to actually compete with them in the market.

Smaller companies who don't have millions to throw away can therefor not even bring their products to the market. A product that could be much safer for you, much healthier for you, and much cheaper to you.

This is why large pharm-corporations lobby for tight regulations on new drugs entering the market, they can afford to throw away resources while emerging companies can't. This is why large food corporations want to enforce strict "health" regulations because again they can afford to throw away those resources while other can't.

Government backed regulations is nothing short of a method used to protect monopoly privileges, something those who want regulations are so much against.

On top of that the larger corporations are able to bribe regulators while smaller companies can't. They can get away with breaking the law while others would go to jail.

So many times we've heard of good products that work for certain things can't make it to the market when current products do nothing for those things. They can't make it because they're not up to "code". They can't make it because the large corporations know if they do they will not be able to compete in a fair market so they cheat to get their way.

For those Constitutional people out there these federal agencies shouldn't even exist. The Federal government has no right restricting entry into the market place, that's if you believe what's in the Constitution.

So how exactly do we provide for good standards when it comes to food, drugs, the environment, and the like without the government?

It's simple and as usual comes down to protecting private property rights. On one hand it is bad business to make bad products in a society that protects property rights. If a company releases food or a drug that ends up killing people there are heavy repercussions. And we know food and drugs protected by regulations still kill people, so you pay them with taxes to set regulations and continue to pay them when they've failed.

Now assuming this wouldn't be enough to keep those pesky evil companies at bay then a hole in the market has just been created. Private companies could now emerge to set certain standards. Through competition companies with the most attractive standards will be utilized for their well recognized seal of approval. Companies that make food and drugs, and other stuff, would want their products to have this seal of approval because consumers want to see it. Any mischievousness in the process will likely be found and publicized quickly forever tarnishing the respect of the company making the product, the standards company, or both depending on who was at fault.

This can't happen you say? We already have private companies like Consumer Reports who does this very thing. Why do they even exist though since we have federal agencies supposedly doing what they're doing? Because the federal agencies fail at doing it and are still backed by tax payer dollars further diminishing their want to provide a good service, while private companies have incentive to do as well as possible to stay afloat in the market.

Now that we know standards can quickly be made without the need of government we can talk about restriction of entry into the market. Without the government backed agencies all companies can enter the market with their products if consumers want them. It would be up to the consumers to decide what they want to buy and not federal agencies forcing consumers to buy the products their buddies have lobbied for. It always comes down to the individual. Do you believe the individuals should have the right to decide what they want? If you don't then you've justified to its fullest extent a complete totalitarian government telling you not only what you should buy or not buy but what to do in every aspect of your life. This is not the freedom I believe in and I doubt it is the freedom you believe in.

But you don't trust private companies without federal regulations to make quality products? Fine, but if you don't then how can you trust the men large corporations employ to set forth those very regulations you want?

You can't.