Paradox
Things are never as simple as they seem.
Sorry, Elon, But Businesses Rely on Regulation
Tyler Cowen articulates the paradox of bureaucracy.
‘The basic paradox is this: Government regulations are embedded in a large, unwieldy and complex set of institutions. Dismantling it, or paring it back significantly, would require a lot of state capacity — that is, state competence. Yet deregulators are suspicious of greater state capacity, as it carries the potential for more state regulatory action. Think of it this way: If someone told a libertarian-leaning government efficiency expert that, in order to pare back the state, it first must be granted more power, he would probably run away screaming.
‘My favorite deregulatory tactic, and one which is relatively effective, is simply to be slow to regulate new sectors of the economy. Thanks to economic growth and innovation, there will always some important yet less regulated sectors of the economy. Those particular forbearances won’t last forever, but over time, other new and less regulated sectors will arise to take their place. This phenomenon is currently playing out with the development of AI.’
Athens is suffering from terrible fires this year, despite the existence of requirements to clear land near residential areas of flammable materials. Recently, they amended the law so that it is no longer sufficient to clear the land; one also must mark it as “uncleared” on a digital platform.
Greece’s government is using this as a scapegoat. Because many people didn’t mark their property as uncleared, even if it was, the government deems these plots of land to be in violation. They now have someone to blame for the fires.
Nothing in the declaration rule would have reduced the risk of fire. At least, there is a “narrative.”
‘First things first: Provisions for “fire prevention measures on plots and in other uncovered areas located in or near residential areas” have been in force since 1987. According to the Official Gazette, “owners or in any way exploiters of plots of land and other uncovered areas located within or near residential areas and up to a distance of 100 meters are obliged to clear them of grasses and remove any other flammable materials to prevent the risk of fire. The state, local government organizations, legal entities, organizations etc have the same obligation, as long as they are the owners of such premises.”
‘The big “reform” this government has done is to add unnecessary red tape. It is no longer enough for citizens and taxpayers to clear their property of flammable materials, as logic and the previous law required. They must also declare it on the platform with the evocative name “Akatharista” (meaning “uncleared” in Greek).’
Housing Is the Sleeper Issue of the 2024 Campaign
How does the federal government propose to override local NIMBY regulations?
‘Ms. Harris promises to reverse local housing restrictions that increase home-construction costs. In California, low-income housing costs twice as much when built with government assistance as when it’s built without it. The National Association of Home Builders estimates government regulation adds a total of $94,000, or 23.8%, to the cost of a house. The Biden-Harris energy, environment and labor mandates are driving these costs. In addition, the American Enterprise Institute’s Ed Pinto identifies federal cost drivers such as Davis-Bacon wage requirements, excessive safety regulations, tariffs on imported construction materials, and restrictions on logging on federal lands.
‘The Biden-Harris proposals would also cap annual rent increases on some private rental property at 5%. When this shrinks private housing supply, will a President Harris compensate with more government spending? Housing price controls would make America’s housing supply problems worse, as they have done in New York City and as oil price controls in the 1970s made the energy crisis worse.’
The Surveillance and Exchange Commission
Trade for a regulated entity? You have surrendered your right to privacy when it comes to communications on your personal phone and your employer has become the enforcer.
Banks must collect communications from their employees’ personal phones and disclose it to the SEC.
Want your privacy? Then you can day-trade in your pyjamas at home. At least the snacks are nearby.
‘The SEC has demanded that firms search employees’ personal phones and hand over evidence of business-related communications. It also has dangled smaller fines for firms that cooperate with its investigation of alleged records-keeping violations. The agency says firms are required by the 1934 Securities Exchange Act and 1940 Investment Advisers Act to preserve business records for regulators to review in audits or investigations. But business records then involved hard documents. It’s much harder now for companies to police and preserve employees’ electronic communications.
‘Nearly all the fined firms had policies in place that prohibit employees from using personal devices and messaging channels like WhatsApp for business. They also record employees’ communications and activities on work devices. Companies don’t want employees using unapproved platforms for security reasons. But enforcing such rules is difficult.’