The View From 1776
Thursday, April 12, 2012
Sclerotic Government Regulation
Governments can do few things as well as private businesses operating in a free-market economy. Competition and full recognition of costs is the only effective way to innovate successfully, witness the failed Solyandras that populate Comrade Obama’s state-planning vision.
After 9/11 Congress decided that the Federal government should control air travel safety, locking into place early technologies and methods that have worked to stifle innovation. Even super-socialist San Francisco has opted out of the Transportation Safety Administration’s grip and handed airport security to a private company, with much improved results.
Forbes magazine reports on another warping effect of Federal regulatory straitjackets: