Which is the whole point of the regulation that many were whining about. Sure, in most cases it impedes the growth of capital. But, without them, you get the world economy doing a belly flop every couple of decades. We went through centuries of that happening until the 20th century. Now, true, it didn't totally stop business cycles. But the downturns were no longer the white knuckled plunge into the unknown like the panics of the 19th century.
You cannot sensibly talk about "regulation" with broad strokes. Some things need regulation and others don't, and some things require a lot of regulation while others require a little.
What we know is that over-regulation of industry is counterproductive. Take, for example, the current auto crisis which is a direct result of labor regulations which effectively insure union dominance.
Now, in the late 1800s, Cambria Iron Works was the only Steel manufacturer in Pennsylvania that wasn't a union plant, yet, its employees had better pay and benefits than any plant in the state. In fact, Cambia was the only plant that enforced an 8 hour work day. Yet, posted outside, was a clear statement that anyone who attempted to unionize the plant would be fired on the spot.
You just don't always need the government to take care of everyone. Sometimes you may, but it should be the exception, not the rule. |
