[[{“value”:”That is the topic of my latest Bloomberg column, just to clarify context for the newbies I think more than half of all current regulations are a net negative. Anywhere, here are some of the problems: Consider the relatively straightforward idea, popular in some Republican circles, of firing large numbers of federal bureaucrats. There would be immediate
The post Why massive deregulation is very difficult appeared first on Marginal REVOLUTION.”}]]
That is the topic of my latest Bloomberg column, just to clarify context for the newbies I think more than half of all current regulations are a net negative. Anywhere, here are some of the problems:
Consider the relatively straightforward idea, popular in some Republican circles, of firing large numbers of federal bureaucrats. There would be immediate objections, not only from the employees themselves but also from US businesses.
Businesses need to make plans, and they frequently consult with regulatory agencies as to what might be permissible. The Food and Drug Administration needs to approve new drug offerings. The Federal Aviation Administration needs to approve new airline routes. The Federal Communications Commission needs to approve new versions of mobile phones. The Federal Trade Commission and Department of Justice need to give green lights for significant mergers. The Federal Deposit Insurance Corp. needs to approve plans for winding down failed banks. And so on.
If those and other agencies were stripped of their staffs, a lot of US businesses would be paralyzed. You might argue that this fact is itself proof that there is too much regulation, but the fact remains. Shutting down a large chunk of the federal regulatory apparatus would make it harder, not easier, for the private sector. Furthermore, regulation would give way to litigation, and the judiciary is not obviously more efficient than the bureaucracy.
And this:
The basic paradox is this: Government regulations are embedded in a large, unwieldy and complex set of institutions. Dismantling it, or paring it back significantly, would require a lot of state capacity — that is, state competence. Yet deregulators are suspicious of greater state capacity, as it carries the potential for more state regulatory action. Think of it this way: If someone told a libertarian-leaning government efficiency expert that, in order to pare back the state, it first must be granted more power, he would probably run away screaming.
Recommended, the piece has numerous good points of interest.
The post Why massive deregulation is very difficult appeared first on Marginal REVOLUTION.
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