Should Capitalism be More or Less Regulated?

Free access to scriptures religious leaders try to censor

This one says that things should be regulated

This one say no

The correct answer is of course we need “correct” regulations.

But how do we get correct regulations? What motivates voters to regulate correctly?

How does it work?

Well, better property right.

Crimes, like tax, hurt buyers and sellers. In fact, there isn’t any difference between taxing the buyer or taxing the seller. If you tax the buyer, the price will drop. If you tax the seller, the seller will dump the price to buyer.

Say someone bomb a mall.

Who suffers? Visitors of the mall or the mall itself?

Well, may be that’s not a good analogy. But say some malls have regular “robbery”.

Oh wait a minute not a very realistic idea because most malls do not have robbery.

But say they do.

Then it doesn’t matter they rob the customers or the mall. If they rob the customers, the mall suffer because people stay away from the mall. If they rob the mall, the customers suffer because the mall raises price and pass on the higher fee to customers.

The same with states.

Most regulations can be made as a crime against the state. If Bob rob Mary, in state owned by Charlie, Charlie lost money. It’s toward the best interest of Charlie to prohibit robbery in his property.

So instead of making tons of regulations, Charlie, instead of Mary, can sue or punish Bob.

Similar things with Bob’s company dumping poisonous material. Charlie can sue Bob for hurting his tax payers.

Unfortunately, states don’t have clear owners. Hence, voters want to prohibit consensual crimes far more than true evil.

Not the same with privatized governments. Say you uses uber or uses online shop like amazon. Do you ever have a dispute with a seller or driver?

Notice that amazon and uber are like governments. They do one governments’ function, namely judging your case. When that fails you can use the real government to judge but that’s more like exception rather than the norm.

Does uber or amazon resolve your dispute amicably? Simple right?

Now go to court and see how cumbersome it is.

Uber and amazon have owners. It’s toward their best interests to govern fairly.

States do not have owners. Why should it be fair?

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