Do we need to dump government regulations for business? | The Tylt
Libertarians and the right argue business would thrive if politicians removed onerous government regulations. They argue regulations increase costs for the consumer and makes things overly complicated for business owners. Supporters of government regulation say businesses cannot be trusted to do the right thing and need the government to enforce the rules. What do you think?
Do we need to dump government regulations for business?
Critics argue government regulation has spiraled out of control. While many regulations are well intentioned, in practice, they are ineffective bureaucratic nightmares. Instead of strict checklists businesses must fulfill to be in compliance, it makes more sense to issue common sense guidelines and hold individual businesses responsible for their actions.
The activating mechanism for every public choice must be human responsibility. What’s good is what works. Yes, it’s a good idea to review environmental impacts, but it’s idiotic to spend a decade creating 5,000-page tomes that double the cost of projects and cause environmental harm by prolonging polluting bottlenecks.
The opportunity here is to move from paralysis to practicality. Focusing on results, with clear lines of authority and accountability, is a win-win strategy: Regulation is more effective, and less costly, when regulators and citizens are not preoccupied with compliance. Australia replaced dense nursing home regulation with 31 general principles — for example, to provide “a home-like setting.” Within a short period, nursing homes across Australia markedly improved because, studies showed, the caregivers felt free to focus on what residents needed instead of trudging through the day with their noses in a rulebook.
Supporters of regulations argue corporations have proven they cannot be trusted to regulate themselves. The government must act as a gatekeeper to ensure everyone is playing by the same rules.
The reasons are simple: Firms lack sufficient incentives to set, comply with, police and punish violations of their own standards, and markets cannot ensure that firms will behave with integrity.
Pro-market advocates say the technological-knowledge-expertise gap can be bridged by expert intermediaries who will spontaneously emerge to monitor industry and ensure adherence to appropriate standards. But the spectacular failures of Enron and the more recent global financial crisis vividly demonstrate that industry gatekeepers are weak and hopelessly unreliable guarantors of standards of behavioral integrity.
Here's why people think businesses should be deregulated.
Here's why people think businesses must be regulated.
Companies bend rules and regulations and they don't want to lose business by going more efficient routes. Example, Volkswagen.— tatiana (@seacow_) November 14, 2016