This is how full fledged socialism is born.
Regulations are followed by more regulations, thus distorting the markets. And this situation requires more regulations. More and more groups want to be protected. And the government issues new programs and new regulations. Eventually the economy is so regulated it is stuck in the mud.
Do you need examples? Look at France and Italy.
We have serious problems in the housing sector because it is heavily regulated from the borrower, lender, investor viewpoints.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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