Thursday, January 26, 2012

The next big GOP worry after voter fraud

Why do Republicans hate business regulations?

Maybe because the ones they come up with themselves are so ridiculous.
An Oklahoma Republican is pushing a bill to outlaw the use of human fetuses in food, because, as he says, “there is a potential that there are companies that are using aborted human babies in their research and development of basically enhancing flavor for artificial flavors.”
This level of stupidity should be disqualifying; instead, some folks wear it like a badge of honor.

1 comment:

W.E. Heasley said...

Why do Republicans hate business regulations?

Why only Republicans? Maybe the better question is why does any entity, regardless of political affiliation, oppose regulation? Would it be due to the fact that regulation is a reduction in property rights? That a free market predicated on the rule of law and based upon property rights would naturally be opposed to any reduction in property rights.

Moreover, since you frame the question as the firm opposing regulation, one would need to remember that firms are merely collections of households [Harold Demsetz]. Hence a business regulation, a reduction in property rights, is in essence a reduction in property rights of the associated households of the firm.

Next one needs to remember that regulation is a form of tax. Hence the increase in cost [tax] upon the firm is not borne by the firm, rather the increased cost is passed along to those households that consume the good or service of the firm. Therefore the final cost is borne by consumers.

Next one has to examine the economic phenomena of: All capital and all human capital is mobile. Most capital and most human capital, over time, migrates to the lowest tax environment. Therefore, over time most capital will migrate to the lowest environment of regulation [tax]. Hence one can regulate to the point of private capital formation and human capital migrating away from the regulation e.g. Detroit, Buffalo, Cleveland, the US in general.

Finally, the original question above [Why do Republicans hate business regulations?] followed by the example related to “An Oklahoma Republican is pushing a bill”, is the question really: Why do the actions and notions of particular collective action proponents end by the same collective action proponents hating aggregate collective action?