Here’s a delayed posting of a link to a second article in The Freeman online about regulation.
The first, “There Is No Such Thing as an Unregulated Market,” made the point that “If a market is free, it is closely regulated by the free choices of market participants.” This means that “Government regulation is not the only kind of regulation; market forces also regulate.”
So which kind of regulation works better? I begin to examine that question in the current article, “Government Regulators are Unregulated.” By way of example, I look at how governments regulate government schools in America. A slice:
But we don’t have a properly regulated [school] system. Those who regulate the quality of our government schools do it badly. Why?
Because those regulators are themselves unregulated. Officially, they are regulated from above by the political process, but the political process is so ineffective at regulating regulators that they are essentially unregulated. They are not accountable to the public in any meaningful way.