Wikipedia defines regulation. It begins: "Regulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. "For more from Wikipedia, click here. Someone on MSNBC said It is regulation when they are looking out for us". It should always be looking out for us. However, it cannot be apparent to us when it is in an unfamiliar area and we get inundated by lies from ads and lobbyists against what is best for the people but good for banks, corporations and others not looking out for the people but for themselves.
We know how gullible a great portion of the public is. It's is not a part of their day to listen to news and read politics all day. Most rely on the evening news or what the hear from others who may or may not be more knowledgeable than they abut only more opinionated and vocal.
A country without regulations is as reliable as a ship without a rudder or an automobile without breaks. If the country is seen as a family model, it would be a family with no contact with what the children are doing, though they have not the maturity to make their own decisions with objectivity. Anyone who says we should have no regulations is clearly speaking from a self-serving position. We ought not to listen to them and, certainly, we ought not to vote them into office.
Imagine a hospital with no regulations. The doctors could revert to blood-letting as a treatment for all illnesses, no training to do their job, not collect CMEs to keep up with changing and new treatments, charge whatever they want for doing guess work, and lots of people would die. The analogy is not different when we are talking finance houses. People are risking other people's money and have lost too much of it because they have dealt with it in self-serving choices rather than what might be best for the investor. The Attorney General and his staff have been looking into Wall St for the past few years. We stay hopeful that they will take some action soon on all the evidence they have been acquiring.
We know how gullible a great portion of the public is. It's is not a part of their day to listen to news and read politics all day. Most rely on the evening news or what the hear from others who may or may not be more knowledgeable than they abut only more opinionated and vocal.
A country without regulations is as reliable as a ship without a rudder or an automobile without breaks. If the country is seen as a family model, it would be a family with no contact with what the children are doing, though they have not the maturity to make their own decisions with objectivity. Anyone who says we should have no regulations is clearly speaking from a self-serving position. We ought not to listen to them and, certainly, we ought not to vote them into office.
Imagine a hospital with no regulations. The doctors could revert to blood-letting as a treatment for all illnesses, no training to do their job, not collect CMEs to keep up with changing and new treatments, charge whatever they want for doing guess work, and lots of people would die. The analogy is not different when we are talking finance houses. People are risking other people's money and have lost too much of it because they have dealt with it in self-serving choices rather than what might be best for the investor. The Attorney General and his staff have been looking into Wall St for the past few years. We stay hopeful that they will take some action soon on all the evidence they have been acquiring.
1 comment:
Regulation is a more complex issue that most people assume. Government regulation is frequently credited with forcing people to do their jobs properly. But market forces actually do much more to force professionals to follow best practices. There is no government regulation that prevents the local ice cream store from making broccoli flavored ice cream. But no ice cream shop does this, because clearly they would lose their customers. Similarly, the doctor in your hypothetical unregulated hospital could revive blood letting, but she/he is very unlikely to do so for fear of losing all her/his patients. Her/his practice would be as popular as anchovy ice cream.
For more on this topic, google "Spontaneous Order" or check out this link:
http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Fcollection=104&Itemid=27
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