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The world has had millennia of not regulating very much The one exception is weights and measures. There is a long tradition of regulating these strictly, beca
by HarryHirsch 3y ago
The world has had millennia of not regulating very much
The one exception is weights and measures. There is a long tradition of regulating these strictly, because experience has shown that the market is incapable of driving the cheats out of business and that there must be trust in the markets because else trade will slow down.
- imtringued 3y agoGovernment institutions save transaction costs. Yet we still got some anarcho capitalist idiots on the internet.
- Xorakios 3y agoMost economists and left-leaning research institutes disagree with this. Transaction costs, both monetary and temporal, are always higher with more regulation and governmental institutional involvement. https://www.rand.org/content/dam/rand/pubs/notes/2006/N2505.pdf https://www.rand.org/content/dam/rand/pubs/notes/2006/N2505.... https://faculty.haas.berkeley.edu/stadelis/tce_org_handbook_111410.pdf https://faculty.haas.berkeley.edu/stadelis/tce_org_handbook_... The arguments are usually about whether equity/fairness/outcomes are better, but cost in money and time is always higher.