IPFS Howard Blitz

More About: Economy - Economics USA

Strangulation by Regulation

With the economy in a hyperinflationary tailspin where economic activity slows at the same time the price of goods and services increase, one would think that government officials would get the idea that less regulation, not more, would be the order of the day so as not to strangle the economy any more than it is.  Although, Arizona state lawmakers have acted to protect the neighborhood bake sale from being raided by government authorities, government officials at all levels continue to drag down the ever hard working American with all kinds of regulations, from labeling of food items to greenhouse gases to employment.
According to Goldwater Institute’s Tom Patterson, since 2001, the number of government regulatory agency employees at all levels of government grew 41 percent with a corresponding 44 percent increase in funding.  Accordingly, Americans face $30 billion more today in regulation and compliance costs than just seven years ago.  Each year regulation and compliance costs total about $1 trillion, almost one-third of the annual federal budget. 
Government regulations and compliance rules do not prevent scandals like Enron.  What they do is encourage more government lobbyists to get government officials to make rules and regulations in their favor or their industry’s favor.  Even an Arizona state economist admits that the proposed new rules to regulate greenhouse gases on new vehicles will increase the cost to new car buyers encouraging many motorists to hang onto their older, more polluting vehicles thereby negating the very intention of the government regulations. 
Government officials cannot possibly know what is best for all individuals.  There is an assumption, it appears, by government officials that they, not the individual, must make decisions for the individual from what type of car to drive, to the kind of house in which the individual ought to live, to where an individual may attend school. 
All government regulations have a cost to them paid for through the forced payment of taxation.  By nature, the marketplace is chaotic and unpredictable because of the diversity of human beings.  Attempts to control individuals through government force have unintended consequences because of the natural tendency of human beings to desire freedom.  Individuals attempt to minimize their losses and maximize their gains and if not allowed the freedom to do just that, disaster for all of society as opposed to just the individual is the order of the day. 
Markets must be left alone if general tranquility is to prevail.  It is the attempt by government officials to control the market place that causes market instability in the first place. 
Although the market is unpredictable and chaotic, the results are not.  In general, food gets to its proper place, housing is made affordable, and clothing is available to a wide spread of individuals.  Like one’s body that automatically attempts to correct itself when inflicted by a virus, the market reacts the same way to any aberrations. 
Government officials at all levels must focus on minimizing all interference with people’s lives by reducing and/or eliminating government regulations, reduce all government spending to its constitutional area, and take care of making sure that each individual is allowed his or her right to life, liberty, and to pursue his or her happiness anyway he or she sees fit so long as one does not initiate the use of force upon another.  Government officials can then become real leaders and not pander to those who want government favors through regulation.
The Freedom Library wishes to extend a sincere thank you to the whole Yuma community for its support of the recent “An Evening with the Rushmore Presidents” in helping those interested individuals learn the principles of liberty.  A DVD of the event can be obtained at The Freedom Library for $10.  All proceeds go to The Freedom Library scholarship fund.