Comments on: Regulation Is Almost Always Anti-Competitive

By: Allen

Allen — Sat, 08 Aug 2009 22:56:22 +0000

The only true monopoly is one backed by government laws.

By: Matt

Matt — Sat, 08 Aug 2009 00:50:53 +0000

This of course applies to the investor-owned utility industry, which by its very nature is highly regulated. Ever try competing against one of them? Just look at how difficult it has been for the unregulated for-profit firm SolarCity to get approval from the Arizona Corporation Commission to build, install, and sell the output from photovoltaic solar arrays to the Scottsdale Unified School District.

By: Rolo Tomasi

Rolo Tomasi — Fri, 07 Aug 2009 13:58:15 +0000

Doug,

Awesome analogy. Just awesome.

By: Doug

Doug — Fri, 07 Aug 2009 12:09:34 +0000

“There is too much competition down there. My company can’t make a profit,,,”

“Nobody goes there anymore. It’s too crowded.” – Yogi Berra

By: Not Sure

Not Sure — Fri, 07 Aug 2009 01:22:07 +0000

“What would happen if doctors didn’t have to be licensed and anyone could practice medicine?” -
commieBob

What would almost certainly happen is businesses similar to Underwriters Laboratories or Consumers Union would emerge to certify willing applicants. Consumers would then have a choice- doctors who would voluntarily submit to screening and agree to standard practices, and doctors who wouldn’t. It’s not a stretch to imagine that doctors who refused to agree to certification would have a hard time attracting patients.

Just a guess, but I’d suspect that, given the opportunity for competition, the certification companies would be much more responsive to consumers’ concerns than the government is now.

By: commieBob

commieBob — Fri, 07 Aug 2009 00:29:42 +0000

I’m torn by this. Some regulations are supposed to protect us. We license doctors, engineers, mechanics and even hairdressers. The result is that the numbers of people practicing some professions is artificially limited. We get ripped off. Wasn’t it Adam Smith who pointed out that any group of tradesmen eventually get around to discussing how to rip off the public.

What would happen if doctors didn’t have to be licensed and anyone could practice medicine? My guess is that medical care would be a lot cheaper and perhaps better.

On the other hand: I’m a Canadian. We have universal healthcare. We like it a lot. (Don’t believe the broad in the commercial.) Like I said, I’m torn.

By: Tom Kelly

Tom Kelly — Thu, 06 Aug 2009 22:12:12 +0000

Coyote- do you have any experience with New Mexico liquor laws? I’ve always wondered how they work. It must be real expensive because I’ve noticed that chain restaurants build connected buildings so two or more brands can share the same bar/liquor license.

I’ve also notice some really horrible restaurants that seem to stay in business just because they are the only liquor serving joint in the area.

By: ElamBend

ElamBend — Thu, 06 Aug 2009 19:25:49 +0000

I’ve seen this happen in Chicago. Even had the president of a neighborhood Chamber of Commerce (which I found odd since she had no business) tell me that they didn’t need any more banks or sandwhich shops, they wanted boutiques like another particular neighborhood. Then the sandwich shop that my employers were trying to get into his building was held up because they were worried about two existing ones. Later it turned out that the local alderman had an interest in one of them. Eventually, my employers got the sandwhich shop in and guess what!? All three sandwich shops are still open and doing well.

By: Esox Lucius

Esox Lucius — Thu, 06 Aug 2009 19:04:12 +0000

I had the >ahem< “honor” of being associated the the inner workings of my town’s trustees. A new liquor store was trying to move into town and a few of the trustees wanted to know what I thought about it. It was obvious from the tone of the questions that they did not want another liquor store. They mentioned that a new entrant to the market could weaken the existing liquor store (which was a dump anyway) to which I countered that they consider South West Airlines, a newer faster company that kicked the crap out of the old guard and created better service for all of us. I suggested that if the new liquor store kills the old liquor store, then the old one needed to die and the people were better served by making that choice themselves. The direct quote I got from them (in confidence, not in public) was, “I have seen this guy, he’s just some Indian, he’s no South West Airlines.” I realized that logic and freedom were not going to win the day so I asked, if this were a hamburger stand that was moving in instead of a liquor store and if it was the 50th hamburger stand that this town had, could you stop them from moving in. The answer was “No”. To which I replied, well I guess it’s lucky for anyone that values their economic freedom that they don’t let you guys decide whether or not any other store’s than stores selling alcohol should move in or not. Then, I loudly thanked my lucky stars that no local bureaucrat could block my ability to start or run my business in this town.