Today, some major websites are protesting the SOPA legislation, intended to regulate the internet in an effort to stop online piracy. It’s yet another example of government placing more burdens on business. This time on internet businesses. For example, should such legislation pass, search engines would have to put checks in place to make sure that any site they link to could not itself have copyrighted information. This is nearly impossible and would result in insane costs for search engines. Remember, not all search engines have Google’s cash.
Regulations are a joke. Every time a financial crisis hits, politicians from both parties respond with regulations “to prevent such a catastrophe from ever happening again.” Of course it doesn’t prevent anything. It just increases the cost of doing business of everyone still in business.
Even more screwed up is the fact that the regulations are basically written by the industries they are intended to regulate! Dodd-Frank, the regulation for Wall Street after the 2008 financial crisis was basically written by the “experts” of the industry – or, the banks themselves. The politicians can then claim victory in achieving a win for the American people. Complete nonsense.
Regulation doesn’t work. What works is allowing failure in the free market. Couple allowing companies to fail with strict contract laws and fraud laws (which are handled in the courts) and that is all the regulation you need. Allow individuals to regulate companies by voting with their dollars.
Legislation intended to “protect” us from businesses doesn’t end up protecting us and just makes the cost of doing business that much more. Corporations now have armies of attorneys and accountants to make sure they comply with the latest regulations from our genius politicians.
Imagine the boom in the economy if the excess costs of doing business because of politicians’ regulations were taken out of the system. Instead of spending money on compliance, companies could spend money on new equipment, new factories, new people, NEW JOBS.
But, no you won’t see that. Because the politicians don’t want a free economy. They want a controlled economy where the benefits go to themselves and their lobbyist friends.