Regulations have their purpose to be sure. But they have a dark side as this article points out.
Regulations lead to lobbying. And lobbying leads to corruption. I think one of our biggest problems is we have tried for years to have a pseudo free market while tampering with it so much to create the situation we are in now.
For instance the financial crisis. One big reason for this was regulations forcing banks to make awful loans in Bush’s “ownership economy”. This led to a situation where free market products (mortgage backed securities and derivatives) were corrupted with so many bad loans. The free market never had a chance.
We all blame the banks but it wasn’t entirely their fault.
We see it with college loans. You either make things like this entirely socialized or market based. Too much socializing the free market or free market socializing, depending on your point of view creates these problems.
Regulations lead to lobbying. And lobbying leads to corruption. I think one of our biggest problems is we have tried for years to have a pseudo free market while tampering with it so much to create the situation we are in now.
For instance the financial crisis. One big reason for this was regulations forcing banks to make awful loans in Bush’s “ownership economy”. This led to a situation where free market products (mortgage backed securities and derivatives) were corrupted with so many bad loans. The free market never had a chance.
We all blame the banks but it wasn’t entirely their fault.
We see it with college loans. You either make things like this entirely socialized or market based. Too much socializing the free market or free market socializing, depending on your point of view creates these problems.