A Primer On Regulations

Michael Munger, Chair of the Political Science department at Duke University, gives an excellent primer on regulations, including their limits and dangers. He writes:

Regulation often makes the problem of market failure worse, because regulated markets always, by design, transmit biased or noisy price signals. Robbed of the organizing principle of accurate prices directing resource allocation, some other kind of judgment (in this case, that of a bureaucrat or regulator) must be substituted for private investment. Regulated markets generally beget more regulation, but perform no better (and often worse) than the “failed” market process that regulation was designed to correct in the first place.

Much more here.

One Response to “A Primer On Regulations”

  1. Bob says:

    Hey. It is not what you which determines your truthfulness as a politician, it is what HAPPENS from the decisions you make. Today, around 35 marines were killed in iraq, and president Bush looked dumbfounded in his response. Always remember that actions speak louder than words or ideology. 🙂

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