3 ms·

You say this as if regulation for companies is a bad thing. Your entire existence is governed by regulations. Why should theirs not be?

• akoboldfrying 2y ago
  It's not wholly a good or bad thing. It's a complex thing, with large secondary effects that people habitually overlook. One typical effect of increasing any kind of regulation is that large incumbents tend to benefit disproportionately compared to small operators and newcomers, for several reasons: (1) larger operations can amortise compliance costs more easily; (2) larger operations legitimately contain people with useful expertise in helping government decide the shape of the regulations (and will propose kinds of regulation that correspond as far as possible to their own existing practices, and to practices that competitors would find costly to implement); (3) larger operations have the wherewithal to lobby for regulations that are to their benefit and to competitors' detriment, irrespective of how good those regulations are for other stakeholders. (2) and (3) together lead towards regulatory capture, at which point the regulations are almost purely a drain on all other participants with no upside.
  • sixothree 2y ago
    Are you sure you replied to the correct comment?
    • akoboldfrying 2y ago
      Yes. You implied that regulation for companies is inherently a good thing, and I disagree.