Friday, February 18, 2011

Virtue in Regulations

Last Sunday, Feb 12, 2011 I published the following letter to the editor in the Albuquerque Journal.

"Governor Martinez and US Representative Pearce favor reducing environmental regulations as part of a pro-business posture.

It makes sense to reduce unemployment to recover from the recession.  It makes no sense to reduce regulations to reduce unemployment.

Environmental regulations help us preserve the the quality of air and water that are essential to life.  We need environmental regulations to sustain our quality of life, which is as important as wealth.

Regulations have another virtue; they promote competition.  Regulations require businesses to compete by finding ways to meet requirements at lowest cost to the customer.  So, they stimulate innovation and, perhaps, new companies that leave behind old companies that can’t measure up.  Ultimately, we improve our environment and industry at the same time.

A good example is found in the US car industry that used its political power to fight against mileage standards for years rather than compete.  Meanwhile, foreign companies invented ways to improve mileage under the threat of increasing mileage regulations.  This put them in position to meet regulations and profit from increased gasoline prices.

Reducing regulations makes life easier for existing companies and jeopardizes our life-sustaining resources.  It is inconsistent, if not disingenuous, for those who champion the advantages of a competitive, free-market economy to circumvent it by reducing competition."

No comments:

Post a Comment