In response to:

No Regulation? No Problem

gmallast Wrote: Jan 02, 2013 12:57 PM
We need to emphasize Hayek's laws of dispersed knowledge and spontaneous order much more. The knowledge to make the economy work is dispersed over the entire population. The vast majority of it cannot be collected in one place although the free market allows everyone to take advantage of it without learning it. On the other hand, government regulators are systemically ignorant as, without having to make economic decisions based on the knowledge of their own peculiar circumstances like, well, everyone in the economy--decisions they themselves have to bear the consequences of, the regulators do not have access to the knowledge they need to regulate. They are unavoidably clueless.

In the short time since President Obama was re-elected, government has issued hundreds of new regulations. The bureaucrats never stop. There are now more than 170,000 pages of federal regulations.

President Obama wants still more rules. Cheering on increased financial regulation, he said, "We've got to keep moving forward." To the president, and probably most Americans, "forward" means passing more laws.

It is scary to think about a world without regulation. Intuition leads us to think that without government we'd be victims of fraud, as I explain in my latest book, "No, They Can't!" But our...