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To: Les H who wrote (35181)2/23/1999 9:54:00 AM
From: TigerPaw  Respond to of 67261
 
Every regulatory burden imposed on a business is one that its
customers, employees or shareholders ultimately end up carrying on their backs.


If you study the concept known as The Tragedy of the Commons you would find that unrestrained competition drives prices and profits down to unsustainable levels while forcing the competitors to make inefficient use of their customers and resources in order to maintain sufficient market share.

There are only two known ways to avoid this. Either most of the competitors go out of business or consolidate into a few businesses which no longer compete aggressivly, or all competitors are required to adhere to some rules (which may be artificial) that limit the scope of the competition.

In one case you get a few large players, sometimes monopolies, which do not need to be efficient or customer oriented.

In the other you get many smaller competitors looking for a better angle and chafing at the paperwork.

Regulation is not the answer for everything, it is often not well thought out and it gets obsolete and needs updating. But I maintain that there is a valid place for it, especially if you want to preserve multiple competitors to increase the chances for innovation. It is national regulation that makes the most scence in the U.S. so that all of these will compete by the same rules. Without it there would be many fewer companies carrying these burdons.
TP



To: Les H who wrote (35181)2/23/1999 10:03:00 AM
From: Neocon  Read Replies (1) | Respond to of 67261
 
An all- out assault on the proliferation of unfunded mandates ought to be in the top ten of the Republican agenda. Also, we ought to constantly chant the mantra "devolution, devolution", especially since so many governors are Republicans with high ratings. Use their popularity! Say, "folks, we are tired of the one- size- fits- all solutions that come out of Washington. We think that the state governments are run by some pretty fine people, who know more about the needs of their citizens than Washington. That why Republicans are proposing the Renewal of Federalism initiative...." etc. With a curtailment of unfunded mandates, and a major push to end programs that can be returned to the states, in a few years we might truly have the federal government under control.