AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (8 comments)

  1. Robert puharic

    How’d deregulation of the financial sector work out?

    1. John Dearie

      The only major financial deregulation I recall was Gramm-Leach-Bliley, which had absolutely nothing to do with the subsequent housing crash and financial crisis. On the contrary, the diversified institutions that GLBA made possible (BofA, JPM, Wells) absorbed the failing monoline institutions (Bear Stearns, Countrywide, WaMu, IndyMac, Merrill Lynch) at the government’s request and helped stabilize the financial system.

      1. Robert puharic

        Libertarians RIGHT NOW support HR 1105 which would deregulate financial institutions regarding transparency to potential investors about fees.. (94% Republicans voted against it in the last vote, http://www.newrepublic.com/article/117735/private-equity-fraud-how-firms-are-ripping-their-investors)

        And there was the damaging CFMA of 2000 which took regulation of OTC derivatives away from the CFTC, over the valid objection of Brooksley Born. Turns out she was right. This was because conservatives assured us (e.g. Alan Greenspan) that Wall Street could ‘self regulate’ through ‘professional markets’.

        You’re invoking locking the barn door after the horses have escaped.

      2. Robert puharic

        Apologies for the typo. GOP politicians voted FOR HR 1105.

  2. Todd Mason

    Huh? The Mercatus study ranks trucking and airlines as heavily regulated but are they? Both were among the first industries to be deregulated in the 1980s — freed to set their own tariffs/fares. Trucking deregulation lies at the heart of the Wal-Mart economy. Harnessing computers and satellite communication, retailers and suppliers turned trucks into rolling extensions of its distribution centers.
    Now the conduct of these businesses is in fact heavily regulated, but for mostly valid public safety reasons. I for one am happy that onboard transponders make it less likely that the trucker in the next lane is starting on meth-fueled Day Three.
    Which brings us to a double huh? Airlines and trucking fared poorer in the recession than less regulated industrles? Well, duh. Suddenly poorer by trillions, consumers weren’t buying or traveling.
    There is a case to be made against dumb regulations.
    The Mercatus study is not it.

    1. +1

      The chart is also terrible, it only shows what they purport in a few years with uncorrelated meanderings in both directions in others.

  3. I hate excessive (software) patents, but I like the environment clean and protected from companies protected behind an LLC or bankruptcy who wont be held accountable for the clean-up and leave it to tax payers –I’m all for LLCs and bankruptcy though.

    The point is, the general statements of “less regulation is good” perpetuates the wrong ideals and the wrong type of rhetoric. You really should know better.

  4. Joe Bannister

    The most regulated, subsidized, molly-coddled, enfeebled US industry is agriculture—but the Mercatus dudes did not include agriculture in their study.

    It is often said that US agriculture leads the world….

    I probably would concur with the thrust of the Mercatus study, but it seems yet another “study” in which the authors want to confirm their biases.

    Most academics write the conclusion first, then dodge up the data somehow….

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