The thing that discourages me about financial regulation is that it's going to be a huge, unreadable bill, written mostly by lobbyists, which disproportionately burdens small businesses and outlaws anything innovative, thereby eliminating competition and reinforcing the corporate oligarchy that exists.
So is deregulation the answer?
Well, no. When deregulation gets done, the bills are written mostly by lobbyists. The big corporations identify a few of their pain points and we happily eliminate those regulations, but we never worry about the things that are most burdensome to small businesses or the regulations that prohibit new companies from starting up at all. So deregulation tends to strengthen existing companies and reinforce the corporate oligarchy that already exists.
Basically, for the market to work better we need to increase competition, but Congress will never have any incentive to encourage increased competition. That proposition would pit the lobbying dollars of every existing company in an industry against the interests of companies that haven't been formed yet.
So is deregulation the answer?
Well, no. When deregulation gets done, the bills are written mostly by lobbyists. The big corporations identify a few of their pain points and we happily eliminate those regulations, but we never worry about the things that are most burdensome to small businesses or the regulations that prohibit new companies from starting up at all. So deregulation tends to strengthen existing companies and reinforce the corporate oligarchy that already exists.
Basically, for the market to work better we need to increase competition, but Congress will never have any incentive to encourage increased competition. That proposition would pit the lobbying dollars of every existing company in an industry against the interests of companies that haven't been formed yet.