Skip to main content
No. of Recommendations: 0
Have you ever considered why we have regulations and why a free market needs them

The primary drive of capitalism is to increase profit.
Imaging what would happen if you removed all the rules and regulations from industry.
Take for example the meat packing industry. There will always be that unscrupulous one who sees the profit equation and figures out :

I can reduce labor cost: Corner the market, bring in cheaper labor
I can reduce labor cost: Eliminate quality control
I can reduce material cost: Buy cheaper meat
I can reduce material cost: Add fillers
I can reduce processing cost : No refrigeration
I can reduce processing cost : No masks protective equipment

Oddly enough they have all happened and the public suffered as a consequence
The company goes under and emerges later under a new banner. And as the low cost bulk provider rapidly picks up its market share

So the public says this must be stopped. Hence we have regulations that are broadly applied to all.
These rules usually have the most impact on those who "did their own thing", whereas the people who were already doing them had minimum impact.

Now if you still want to balk at the rules, maybe you should push for the Chinese system which is a lot more lax. But the penalties for malfeasance are more severe. Ask the guy who put plaster in baby food.... sorry he is unavailable he is on another line. Not really, his remains rotted off and fell the the ground months ago
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.