For all the Naysayers Out in the Crowd… Regulations Aren’t Your Friends

“But, who would protect us all from business abuse and fraud?”

Ok, maybe the whole “We’re all going to die” mindset is prevalent when I bring up the deregulation topic, but it’s a discussion we need to have.

Contrary to what bureaucrats, Liberals, and the EPA claim, regulations are not the sole barrier against the world economy ending as we know it. The Tribulation isn’t going to take place.

Are there regulations that legitimately protect you from being violated or abused by inappropriate business practices? Yes.

But don’t mistake the innocent of a few to validate the group as a whole. Don’t fall into the trap that regulators lay for you. Today, regulations are suffocating the market. They’re slowly chocking businesses to death.

If you have a hard time believing this then this article is for you. If you believe that regulations are solely for your “protection,” you’ll find out it’s not always the case. If you think the US would revert back to the “sweatshop days”…. You might be a Liberal.

No, I’m kidding. You’re not a Liberal. You’re just a worried citizen, which is a great thing to be. Don’t ever lose that. But there comes a time where your fears might be misplaced. Hopefully this’ll help you realize that deregulation isn’t scary. It’s not suicide.

For the Naysayer, Worrier, or Unconvinced Individual

Regulations are for your protection: Some of them are, and some of them aren’t. The vast majority aren’t. The bigger the government’s role is in the market, the more control they will have. That also means companies will have an incentive to “get in the game.” By that, I mean, buying legislatures, and passing bills that make their industry difficult to enter for new businesses.

If you want to take out a rival competitor, you’ll use the legislature to do it. Once the government starts to regulate an industry, it opens a door for companies to intervene in the political process. To survive, and thrive, businesses have to develop relationships with legislatures.

This is how Crony Capitalism begins. Once you initiate the relationship between government and business you invite corruption, monopolies, and abuse.

Regulations are the only things keeping us safe: That’s a little extreme, but not surprising. You could say that the only thing keeping you safe from “greedy businesses” is the force the state provides, but you’d also be wrong. You know what’s keeping you safe? You know why Target isn’t going around blatantly ripping customers off? Because there’s natural barriers in the market system.

If a company abuses the relationship it has with its customers they’re as good as dead. In the day of social media, the internet and an overly unsatisfactory populace, a company that abuses their customers is signing their death warrant. Complaints spread.

Don’t forget about all the private organizations who investigate fraudulent business actions. That’s they job, and they’re a valuable asset in any economy.

Regulations reign in greedy businesses: If only they did, but rarely is that the case. Think about it. Who would be better equipped to comply with every regulation that comes their way? A small business or a large company? You’d pick the large company. They have the resources, manpower, and know-how to conform to new regulations.

Small businesses currently bear a disproportionately high cost, compared with larger businesses, to comply with federal regulations. A 2010 Small Business Administration study shows small businesses pay 36 percent more to comply than their larger counterparts, at an average cost of $10,585 per employee.

In a way, regulations help greedy businesses. They smother small businesses while getting rid of the competition. (Click to Tweet) Big Business can even use regulations to kick other companies out of the sandbox.

Without Regulations, we’d have sweatshops: First off, we’re not in the Industrial Revolution. There’s a reason why it’s called a “revolution.” Revolutions aren’t perfect, and nine times out of ten stuff hits the fan. Secondly, when was the last time you heard of swat teams shutting down a sweatshop in the US? Sweatshops have been replaced with machines. Your child won’t be forced into a sweatshop if deregulation ensues.

If you go to China, then that’s another story…

The whole argument is rather fear-based and unrealistic. Like the country would revert back to an Industrial Age environment because we deregulated the market. How hilariously improbable.

Without Regulations, business competition would be horrible: It’s actually the other way around. More regulations means worse market competition. A Free Market runs on the system that to survive and thrive you have to provide value to your customers. (Click to Tweet) That can be done either by being unique, innovative, or cheap.

In a regulated market, that system slowly whittles away. The very rules and procedures made to protect you become a club with which to beat your competition to death. If you can’t beat them, use the government to shut them down. (Click to Tweet)

Without regulations, businesses would do whatever they wanted to: Again, more hyped up fear. The market has other means of reigning in unruly players. One avenue is private organizations. These guys investigate business actions, review new products, and send out customer safety reports. They’re not state run, and they provide a valuable service.

So the answer is no. Businesses won’t be able to mess around in a deregulated market. They never have free reign. You have picky, never satisfied customers, and private organizations waiting for them to mess up.

Natural checks and balances exist.

Regulations aren’t natural. In most cases, they’re reactionary efforts proposed by people in power who look at a situation and say to themselves, “This should never happen.” They don’t analyze the consequences of their actions. Heck, they’re not even businessmen.

Yet you’re told that they know what’s right for you. Those guys in Washington have got it covered, buddy. They’re on your side.

And any harmful side effects that might arise from their pieces of legislation are just minor speed bumps on the highway to a market utopia.

Utopias aren’t realistic, especially in the market. Horrible things happen. Capitalists don’t deny this fact of reality.

Regulators do.

Who would you rather go with?…

The guys who realize that there’s a natural and unobtrusive way to enjoy the market?


The guys who think you can reach utopia by being legalistic?

There’s over 170,000 pages of regulations… how much more do we need to reach utopia? (Click to Tweet)

 Number of Regulations and Utopia

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About John-Pierre Maeli

Keeping it simple and crystal clear, because anything else is useless. I'm here to not only inform you, but to also connect with you. That's what The Political Informer is all about. Feel free to follow me on either Twitter or Google+ Let's talk!

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