3 ms·
External political oversight* is one thing. Control is another. There is a trend of legislature propping up broken industries to the detriment of the people. T
by iplaw 10y ago
External political oversight* is one thing. Control is another.
There is a trend of legislature propping up broken industries to the detriment of the people. Take the dealer network argument for example.
Dealers argue that the existence of dealers creates inter- and intra-brand competition that drives prices lower and benefits the consumer. In the same breath, however, they say that it is impossible to compete with direct sales from Tesla. It is too competitive.
These are two contradictory statements. Dealers act as a middlemen that necessarily increase prices in order to generate profit that is allocated to said dealers. Dealers have historically enjoyed this now-oft-unnecessary place in the chain of automobile conveyance. But dealers view this profit source as a basic right which must be legislatively protected. And, thus far, they have been quite successful at lobbying for mandates which require these market inefficiencies.
- emodendroket 10y agoWithout legislating any particular example I agree that regulation can be used as a cudgel to stifle competitors too, but I don't agree that the answer is to throw out the concept.