Tuesday, August 6, 2013

Regulation and Capitalism

Some interference by the government is good for market systems like capitalism. If the government backs money that is trusted this is a boon. Having regulations that deal with weights and measurements is also great. The western style of rule of law is good. Generally clear and enforced rules are good.

However, rules can go too far. Too much red tape will harm markets and can kill off companies. Often times complying with government rules can cost companies lots of money. Often people only look at what taxes are paid by companies. However, government red tape can sometimes add more costs for business.

Yes, we need regulation of business. However, governments tend to produce new rules every time there is a problem. Over the years we end up with lots and lots of rules, but you have to wonder if this is working as we always seem to get new problems and get more new rules and this keeps going on.

On my other blog I am today writing about Exchange Income Corp. (TSX-EIF, OTC-EIFZF)…continue...

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