In a free market world, producers pursue their separate interests within a competitive marketplace… The consumer will do business where she finds the quality and price she demands… Producers therefore compete, on that basis, to meet her needs…
In today’s world, producers pursue their separate interests within an evermore regulated marketplace… The policymaker will do business (regulations) where he finds political support at a price (favor) he can hide inside the regs… Producers therefore compete, on that basis, to meet the politician’s needs…
From last Thursday’s NY Times; Wall Street is United in its Disdain for Dodd Frank, but Split on Details:
As federal officials flesh out some 300 new regulations, top companies and trade groups are squabbling over the fine print, each cheerleading for policies that suit their own businesses.
Some level of discord is expected. The Dodd-Frank law, which spans some 2,300 pages, is as huge and disparate as the industry it polices.
But a few industry debates have grown hostile. Firms are taking aim at competitors, and regulators are stuck in the awkward position of picking winners and losers