5/13/12

Practical Meanings of Regulation & Deregulation in Governing

The parable of the Long Island's  taxi service within a free enterprise versus socialized or corporate environment is simple and illustrative for the challenges facing the U.S. Government and way of life of the people of the United States today.


On a Long Island the is a city with millions of people with a need for taxi service. There is enough work for maybe 20,000 taxis and drivers. How does one keep individual free enterprise best supported in that environment? The answer is obviously to limit the number of taxis or drivers in the employee of any individual to a percentage of the over all number of taxis.
Regulation can mean many things; it can have several different definitions and uses. Regulations may liberate as well as repress. That is the nature of governance; any large organization with power may govern or shape the social environment in fact if not in name.
On the long Island companies A, B and C have gained an advantage and capitalized concentrating their wealth and grow to own 99% of the taxis on the street putting their rivals out of business. Their need for competitive innovation declines. Capitalism has been corrupted and free enterprise opportunities extirpated. Companies A, B and C are bought by a predatory global bank and finally the local government passes laws in support of the taxi owning bank.
With regulation designed to keep local free enterprise normalized a regulation limiting the number of taxis anyone might own in the Long Island environment at 100 might have been passed to keep at least 200 independent taxis companies in existence. The competition to get more fares might have driven the innovation of electric cars with faster recharging batteries and better route plotting navigation systems through traffic with real time-information on road traffic flow conditions. That is not some form of socialism-the state owns nothing, it simply uses regulation to keep real free enterprise alive instead of a nominal free enterprise in the corporate state kicking back to politicians.
The Corporate state is advancing through networks and globalism to reduce the prospects for dissident, competitive free enterprise. Intelligent regulations designed to stop the concentration of wealth in an extreme minority through support for free enterprise would be useful for the defense of American economic opportunity, creativity, independence and national security.

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