Sunday, March 20, 2011

Regulation: "Dr Claw and the Lobster Underground"

We've addressed the incestous relationship between big business and regulators/politicians in a few posts and tangentially in many more, links below.
From the Chicago Boyz blog:
An interesting story about the way regulation is used to protect incumbent businesses and suppress competition. (the lobster link)
In New York City, the number of food-cart vending permits is capped by the city’s administrative code:

And you cannot get one. The waiting list is even closed. But it was 10 or 15 years’ wait. It’s impossible to get a food vending permit from the city.…If you want to get a permit for your cart or truck, you cannot do it.

Why Big Business Loves Big Government
It's not the contracts, it's the regulations they love.

Because a behemoth can spread the cost of regulation over a larger revenue pie, the percentage hit to each dollar of sales is lower, sometimes much lower. It's the functional equivalent of a regressive tax on small business.
Big business loves regulation, it keeps the competition out.

Here's the Wall Street Journal's Numbers Guy blog...

...Also at Numbers Guy:
How Many People Suffer From Mental Illness? 
Nov. 2010
President Obama Has Been Very Good For Corporate America
Don't listen to the Chamber of Commerce/White House chatter, it's either a distraction or deliberate misdirection.
Big business and big government are as symbiotic as you can get.

Update to "President Obama Has Been Very Good for Business
Who Owns Congress: "The House: Big Labor vs. Big Money"

The Wonder of Regulation: "Black Liquor Tax Boondoggle May Net Billions for Papermakers"

And many more.
Use the search blog box with the keywords rent-seeking, Baptists and bootleggers or regulation.
Don't get me started on NYC taxi medallions.