World’s Worst Regulations!
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There is a long history of regulation and deregulation where big scandals provide the catalyst for new rules, and then the realization that the rules are possibly excessive has caused them to be rolled back.
In finance the 1933 Glass-Steagall provisions came in the wake of the 1929 Crash. The 2002 Sarbanes-Oxley Act was a reaction to the Enron and WorldCom scandals. Dodd-Frank was enacted in 2010 after the 2008 financial crisis.
Good regulation can bring all sorts of benefits, but excessive regulation, does little to serve the public interest, and creates financial costs and frustration for businesses and the public.
Elon Musk has vowed to dismantle thousands of federal regulations as the co-head of the Department of Government Efficiency, or DOGE, saying the nation’s financial security depends on it. Is he right, and if so, what rules need to go first?
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Additional Reading:
https://regulatorystudies.columbian.gwu.edu/brief-history-regulation-and-deregulation
An Evaluation of Consumer Protection Legislation: The 1962 Drug Amendments | Journal of Political Economy: Vol 81, No 5
https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear#conclusion
https://worksinprogress.co/issue/how-madrid-built-its-metro-cheaply/
Milton Friedman Video: https://www.youtube.com/watch?v=dZL25NSLhEA
A history of regulation and deregulation: https://regulatorystudies.columbian.gwu.edu/brief-history-regulation-and-deregulation
Weird Laws Around the World: https://www.farandwide.com/s/weird-laws-world-4961c1ede8d749bf
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30件のコメント
To try everything Brilliant has to offer for free for a full 30 days, visit https://brilliant.org/patrick/. You’ll also get 20% off an annual premium subscription.
There are suggestions now that the HS2 bat tunnel is actually a death trap for bats. They can get in through the netting holes, but can't get out.
great video!
Patrick suit game needs to be tought in schools!
@15:44 Rail transportation is not more carbon intensive. Per unit mass it's the least carbon intensive option available, and certainly better than a massive ocean going vessel burning bunker oil. Now road transportation, on the other hand….
Usa food regulations are a joke compared to EU countries
Friedman is not the first economic quack who thinks that the theories of his field work in other fields, while not understanding them.
I am more and more convinced that most laws should by default come with an expiration date. If it proves to be good it will no doubt be no problem to pass an extension. If it's not, well, it will simply no longer be a problem.
Regulate your ads. 3x2ads each is really pants wetting.
I think part of the issue with arriving at optimal regulations is people having a disproportionate reaction to terrible-but-rare incidents. Ultimately, one or a handful of people dying is always a tragedy, but when you live in societies with 10s or 100s of millions of people, it has to be assumed that anything and everything will contribute to somebodies death somewhere. If there are sensible regulations that can reduce risk with proportionate costs, okay, but I often the cost-per-life-theoretically saved is insanely disproportionate.
"At least 50% of the popular music they play is Canadian content – many people feel that this law has led to the Canadian people being confused about the meaning of the word ironic."
Lovely little poke at Alanis and the CRTC!
Any time you rely on arguments from the Chicago or Austrian schools, you've already failed. Friedman was a quack.
@bald finance comedian, what do you think about Nissan, Honda, and Mitsubishi merging?
Man, we need to get rid of a bunch of regulations for the USA to be great at getting stuff done again. I really hope the people in power here will make that happen.
I just read a NY Times article on private credit and concerns about transparency and potential systemic risks. What about a Patrick Boyle's punk rock video on that?
Research the chicken tax that somehow results in me not being able to buy the amazing Toyota Hilux pick up
Google the state of california's estimate for the final cost of the one hundred and seventy one mile section of their high speed rail out in the desert. Cost estimates are between twenty eight billion dollars and thirty five billion dollars which works out to over thirty eight thousand dollars per foot.
I'm sure each of these regulations have a basis in good reason. And yes, we all know business people don't like regulations.
Hi,
Why do you think there is a problem with the Salmon Act 1986.
Most countries have laws against theft, many have laws against handling stolen goods.
The Salmon Act merely takes away the defence 'I didn't know it was stolen, or can you prove this fish was stolen?' and replaces it with the requirement that the accused explains how they came to be in possession of the fish. It has a similar effect to an 'Unexplained wealth order', I think the US has similar rules given that Al Capone seemed to be Jailed for not paying Federal Taxes, I could be wrong.
Has this law caused any unexpected or unhelpful consequences, other than many ill informed You-Tubers to make stupid statements about it?
The Elizabeth line signalling was a problem because that's not actually a metro line – it shares tracks with mainline trains outside the central section, so the signalling had a difficult task to do.
Of course, that shows a total failure of planning – instead of just forcing the mainline trains to upgrade and unify their signalling, thus having benefit for everyone while keeping things simple, they wasted three years on testing Elizabeth line only with a much more complex system.
salmon act of 1986 is more about the illegaly fished salmon or illegal transport of salmon, thats what it implies with the "handling of salmon in suspicious manner"
I’m sure Boeing would have appreciated some deregulating of the aerospace industry 😁
The point of the 'salmon under suspicious circumstances' law is that it can be hard to prove beyond a reasonable doubt that someone poached a salmon.
While some laws are stupid, the fact that a regulation sounds pointless or unnecessary doesn't mean that it actually is, there might be a valid reason for it (see Chesterton's Fence).
Another great episode. I keep running back because I constantly learn a thing or two.
Thanks for featuring Sophie Kathryn Jones in one of your videos. I took your advice and contacted her for investment and budgeting opportunities. The results have been incredible. Started with slightly less than $40k, and now I’ve paid off my $529k loan in 6 months. Now totally debt free with 2 paid off rentals, having no debt for the last 12 months. Thank you Sophie Kathryn Jones!
Sweden also has the rule about art in new buildings (only state funded ones). About 1% of the budget has to go to art, but sometimes it ends up being architectural things too. It's pretty neat actually. It ensures work for a lot of artists in the country and makes the buildings, new parks, even new roadways much nicer. Yes, even the new tunnel around Stockholm city has to have art in it.
I liked the Chicken Tax, was a series of embarrgoes on Europen goods when the French complained about the flooding of the European market with cheap US chicken. These goods were eventually readmitted except utility vehicles which remains to this day. It was considered convenient to ban the importation of utility vehicles (utes).
Why is there not a rule in the US to prohibit Shorting stock? Can you explain? Why would one try to get rich over the downfall of businesses? IT is so counter productive, and polarizing.
I wouldn't worry about only unethical companies taking advantage of unenforced U.S. regulations. This is 2024, they're all unethical.
It's so exhausting.
No common sense.
16:15 Why isn't it the Jone's act ended?