Why is it that when the regulatory regime fails–see the Madoff fraud case–many people call for more regulation, but when markets (allegedly) fail, these same people don’t call for more markets but rather more regulation?
Cross-posted at Anything Peaceful.
People call for regulations no matter what. It has nothing do with the perception of governments or markets failing, but simply a kneejerk reaction that "someone ought to do something". There is a problem and they want a solution. Unfortunately most people see government as the solution provider of first resort.
ReplyDelete