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From: sykora@csd2.UUCP (Michael Sykora)
Newsgroups: net.politics.theory
Subject: Re: Strange Bedfellows: and a new topic
Message-ID: <4340007@csd2.UUCP>
Date: Mon, 9-Dec-85 06:58:00 EST
Article-I.D.: csd2.4340007
Posted: Mon Dec  9 06:58:00 1985
Date-Received: Wed, 11-Dec-85 22:25:29 EST
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Organization: New York University
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>/* franka@mmintl.UUCP (Frank Adams) /  7:09 pm  Dec  7, 1985 */

>On the other hand, I can give examples where regulation has been
>successful.  The U.S. securities industry is perhaps the best example.
>This regulation should in fact be extended: to dealers in gems,
>precious metals, and similar investments.  A lot of innocent people
>have lost a lot of money in scams in these areas recently.

One point you may not have considered is that it is often better to have
no regulation than inadequate regulation.  By "inadequate," I mean
regulations that significantly less than was originally (and, perhaps,
still is) claimed.  The problem such inadequate regulations cause is
that they instill a false confidence in the public that the regulations
do in fact accomplish what was intended (and to more or less the extent that
was intended).  The public will then act on this belief, with potentially
dire consequences, due to the inadequacy of the regulations.

It could, of course, be argued that the problem lies not with the regulations,
but with those politicians who deceive the public regarding the efficacy of
the regulations.  Alas, as you indicated in your posting, "we are talking
pragmatics here," and such occurrences are commonplace, because they are
politically pragmatic, i. e., such schemes are easy to pull off.

The point I am making is that too often people think  --  "there ought to be
a law"  --  without considering carefully whether the law in its proposed form
is likely to improve the overall situation.

>Frank Adams                           ihpn4!philabs!pwa-b!mmintl!franka

Michael Sykora


P.S.  --  Another consequence of regulations is that regulations tend
to take decisions out of the hands of individuals.  One wonders whether
even the ostensible benefits of many regulations are worth the (opportunity)
cost of human capital not developed as a result of the existence of these
regulations.