"Once you take the mental leap to recognize markets are self-regulating and the economy itself would not erupt into chaos absent government regulation, it’s easy to see other huge problems with today’s regulatory system that are so often overlooked.
Glossing over the fact that the system is clearly unconstitutional, two biggies are that heavy regulation favors big business at the expense of small business and the moral hazard created by the blind trust people put in regulations and regulators.
On these matters I’d like to quote Dr. Ron Paul:
"'It is important to understand that regulators are not omniscient.
It is not feasible for them to anticipate every possible thing that could go wrong with whatever industry or activity they are regulating.
They are making their best guesses when formulating rules.
It is often difficult for those being regulated to understand the many complex rules they are expected to follow.
Very wealthy corporations hire attorneys who may discover a myriad of loopholes to exploit and render the spirit of the regulations null and void.
For this reason, heavy regulation favors big business against those small businesses who cannot afford high-priced attorneys.'"
"'The other problem is the trust that people blindly put in regulations, and the moral hazard this creates.
Too many people trust government regulators so completely that they abdicate their own common sense to these government bureaucrats.
They trust that if something violates no law, it must be safe.
How many scams have 'It’s perfectly legal' as a hypnotic selling point, luring in the gullible?
Many people did not understand the financial house of cards that are derivatives, but since they were legal and promised a great return, people invested.
It is much the same in any area rife with government involvement.
Many feel that just because their children are getting good grades at a government school, they are getting a good education.
After all, they are passing the government-mandated litmus test.
But, this does not guarantee educational excellence.
Neither is it always the case that a child who does NOT achieve good marks in school is going to be unsuccessful in life.
Is your drinking water safe, just because the government says it is?
Is the internet going to magically become safer for your children if the government approves regulations on it?
I would caution any parent against believing this would be the case.
Nothing should take the place of your own common sense and due diligence.'"
Chris Wood, Casey's Daily Dispatch, 08-26-10
Bureaucrats by their very nature are not risk takers nor creative in an entrepreneurial way.
This means they are attempting to regulate something and someone they do not understand, plus are at core alien to in a basic psychological way.
Plus, bureaucrats tend to crisis manage, not anticipate, sell out to special interests, and overreact, in addition to being security oriented, self-protective and building their self- and financial- worth in a parasitic bureaucratic empire.
I am increasingly viewing centralized civil government bureaucracy the same way I view a virus in a computer.
The older the bureaucracy, the more layers in the bureaucracy, the more people in the bureaucracy, the richer the bureaucracy, the more widespread the bureaucracy is geographically, the great the likelihood the bureaucracy is a virulent virus that encourages immaturity and irresponsibility among the general population.
Renown author M. Scott Peck referred to bureaucrats as "people of the lie".
Bureaucrats have no moral conscience or accountability when in the bureaucracy, like the order-obeying Nazi soldiers in Hitler's death camps, like the bureaucrats that operate the MQ-9 Reapers out of the safe and sterile environment of the Pentagon, killing 10 civilians for every suspected "terrorist", and then driving blissfully home to coach their little girl's 10-year old US softball team.
"Bureaucracy is the greatest collective manifestation of human evil."
R.E. MacMaster 9/9/2010