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*no red tape Those three words are where things get complicated. In a general sense red tape is the difference between a laissez faire economy and a free marke
by wycx 10y ago
*no red tape
Those three words are where things get complicated. In a general sense red tape is the difference between a laissez faire economy and a free market economy, if you mean government regulation when you say red tape. Though by red tape you might also mean anti-competitve regulations implemented at the behest of a firm or sector of the economy. In that case it is still very important to acknowledge that free markets are not a natural state, and require regulation of some form to remain functional or even exist.
- hal9000xp 10y agoBy red-tape I mean anti-market/anti-business laws. I was born in Uzbekistan, I know how system works in such countries. You can't do business there without making bribes. Countries like Uzbekistan intentionally create such laws which is impossible to follow and stay in business. Red tape decrease competition, increase favouritism which leads to pro-government monopolies which keep control over big chunk of market. Free markets do require very strong laws but these laws should be: 1) In favour of strong property rights; 2) Equally friendly to new enterprises/small business/big business; 3) Lean, not over-complicated; Basically role of the government is to keep highly competitive economic enthronement without favouritism.