I agree that much of the current regulation of the economy in place in the United States is unnecessary, cumbersome, and harmful to small businesses. And I agree that we definitely need to remove much of the red tape that stands in the way of entrepreneurship. However, we are not debating CURRENT regulation, but the presence of any regulation at all.
Some regulations are fundamental. For example, banks and lending agencies are required by law to state their APR (rate of annual interest) and any finance charge required for loans offered. This allows borrowers to comparison shop for the best rate and terms for the loan they need without getting caught in a wave of extra costs after they agree to a loan.
Another example of consumer-protecting regulation is that of advertising by the Federal Trade Commission to prevent "unfair and deceptive acts or practices in commerce" including advertising that is meant to deceive consumers by stating fraudulent information or by purposefully omitting detrimental information about a product. (Wilson, Lee. "The Advertising Law Guide: A Friendly Desktop Reference for Advertising Professionals." Allworth Press, NY, NY. 2000. 25.)
Creating a marketplace where consumers can be properly informed about their purchases is the first step toward a functioning free market. Without these regulations, human greed and dishonesty could run rampant without consequence, and the people of the nation would suffer from it.
I did not say lawmakers should micro-manage the economy. Nor do I believe that lawmakers are above the human failings we all share or that every regulation they pass is beneficial. In fact, I believe they should do as little as possible besides performing their essential duty to protect citizens. But this does not negate the importance of regulation toward that very purpose; in fact, it bolsters it.
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