Re: Government Involvemen
t: Good or Bad?
09-27-2012 03:05 PM
The government needs to step in when people are abused and injured by the products sold in the marketplace. Yes, many people have been abused and injured by the financial institutions in this country!
How can anyone make a statement that all government is bad? That is absolutely ludicrous!
Take automobiles as an example, if the government didn't regulate this industry we would still be doing the following:
Cars would be getting 10 miles per gallon of gasoline.
We wouldn't have seat belts.
We wouldn't have air bags.
Kids would be riding unrestrained and in the front seats.
Tires would be failing left and right.
We would be losing family members to crashes in unsafe vehicles.
I did not say that all government is bad. On the contrary, I said that they have their role in our lives. Please do not misconstrue a general statement of mine by believing it applies to all areas.
As for the automobiles example, innovation is driven by people and the market is controlled through supply and demand. If people demand a safer ride, that's what they'll get. Let's use the gasoline statement for an example. Increases in technology have led to better, more fuel efficient vehicles. When gas prices go up, people demand these vehicles. This breeds competition, and car companies start competing for this market. This leads to a natural increase in fuel economy. Tires are also a quick one to explain. If you know that a tire had failed, you wouldn't buy that tire, would you? Manufacturers would have to step up their game to compete or go out of business. Tires will fail and corrections will be made - with or without government intervention.
We must not ignore secondary effects either. Air bags were being developed in the late 60's as test beds for improving car safety in addition to various seat belt designs (not yet government regulated, but had been around or nearly two decades). After laws passed mandating seat belts, the auto industry spent time and money investing exclusively in seat belt tooling and standardization, putting air bags on the sidelines for several decades. Imagine how many lives could have been saved from the implementation of airbags decades earlier.
Might I add that many of the innovations/improvements you mentioned are the direct result of innovation. The government simply said "that's good...let's have that in every car."