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Economy
In reply to the discussion: STOCK MARKET WATCH -- Friday, 25 January 2013 [View all]Demeter
(85,373 posts)10. Proof Is In the Pudding: Fewer Prosecutions Equals a Worse Economy (CONCLUSION)
Obama has prosecuted fewer financial crimes than any president in decades less than Ronald Reagan, less than George H.W. Bush, less than Bill Clinton, and less than George W. Bush.
The economy is worse than it has been since the Great Depression, if not before.
See the connection?
Everyone Supports Laws Protecting Contract and Private Property Rights
Even the most radical free market advocates support laws protecting contract and private property rights. In other words, they support the judicial branch of government and the basic laws Congress passes to support such rights.
There are obviously good, pro-competitive laws and bad, anti-competitive laws.
Paul Craig Roberts a true conservative, who was a Wall Street Journal editor and Assistant Secretary of the Treasury under Ronald Reagan, and is widely credited with being the father of supply-side economics points out:
Regulation can increase economic efficiency and
without regulation external costs can offset the value of production.
***
Thirty-three years ago in an article in the Journal of Monetary Economics (August 1978), Idealism in Public Choice Theory, I developed a model to assess the benefits and costs of regulation. I argued that well-thought-out regulation could be a factor of production that increases GNP. For example, regulation that contributed to the quality and safety of food and medicines contributed to specialization in production and lower costs, and regulations enforcing contracts and private property rights add to economic efficiency.
On the other hand, bureaucracies build their empires and extend their regulations into the realm of negative returns. Moreover, as regulations increase, economic managers spend more time in red tape and less in productive activity. As rules proliferate, they become contradictory and result in paralysis.
I had hopes that my analysis would result in a more thoughtful approach to regulation, but to no avail. Liberals continued to argue that more regulation was better, and libertarians maintained than none was best.
***
Thirty-three years ago in an article in the Journal of Monetary Economics (August 1978), Idealism in Public Choice Theory, I developed a model to assess the benefits and costs of regulation. I argued that well-thought-out regulation could be a factor of production that increases GNP. For example, regulation that contributed to the quality and safety of food and medicines contributed to specialization in production and lower costs, and regulations enforcing contracts and private property rights add to economic efficiency.
On the other hand, bureaucracies build their empires and extend their regulations into the realm of negative returns. Moreover, as regulations increase, economic managers spend more time in red tape and less in productive activity. As rules proliferate, they become contradictory and result in paralysis.
I had hopes that my analysis would result in a more thoughtful approach to regulation, but to no avail. Liberals continued to argue that more regulation was better, and libertarians maintained than none was best.
AND THAT'S WHERE THE BRAINS LEAK OUT-WHEN IDEOLOGY TRUMPS RATIONALITY AND REALITY.
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Proof Is In the Pudding: Fewer Prosecutions Equals a Worse Economy (CONCLUSION)
Demeter
Jan 2013
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