[citation][nom]descendency[/nom]Oh god no... Regulation drives prices up, not down. Removing regulations makes them fight it out with much harsher people than the government... it's consumers. If the government stops protecting these companies, they'll have to compete with one another.Competition = Good, Government = not so much.[/citation]
[citation][nom]cappster[/nom]Deregulation is not always a good thing. Look at the deregulation of oil and what it has done to drive prices up. Ever heard of Enron? They pushed for deregulation and screwed a bunch of people when natural gas was deregulated. Regulations are imposed to protect small businesses so it can be competitive with a much larger organization which benefits the consumer.[/citation]
You're both at each end of the topic. Regulation isn't necessary where perfect competition exists but we all know there is no such think as 'perfect competition' so regulations are needed where a lack of competition is prevalent. Too much regulation (or regulating something that doesn't need it) is also undesirable as it can hamper economic growth and distort efficiency.
PS. Cappster, you're dead-on in regards to the US Banks/FI comment.
[citation][nom]enterpol[/nom]while I tend to agree w/you Maxor, this isn't always the case. Part of the bank failures that led to our current financial crisis occurred because of not enough regulations. We figured the banks would be smart enough not to over leverage their capital and we were dead wrong. In a non truly competitive mkt. a.k.a. areas extremely high barriers to entry & strong oligopolies (music, cable, power, cell phone companies) regulation actually helps. Another ex. is TX power companies -- they were deregulated and yearly % price increases have gone UP not down (even after adjusting for higher fuel prices). Regulation prevents cheating & collusion in markets which creates unfair advantages.[/citation]
+1