Monday, February 23, 2009

Comic: market regulation


Market regulations impose costs on businesses. Since most regulators have no experiences with the kind of business they are supposed to regulate, the results can be expected to be tedious and expensive while at the same time creating a legal minefield. Worse even, since the cost of compliance does not scale with business size, huge corporations gain big advantages over their smaller competitors. That's why big business is generally in favor of regulation; you'll find their lobbyists near most regulatory committees.

Regulations do not help "tame the market". They glue together the legs of small and swift competitors so that corporate giants can easily crush them.

(source: Cartoonstock)

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