Monday, August 22, 2011

Lather, rinse, repeat

I found this in my Drafts folder. I'm not sure if I copied from somewhere or wrote it myself...

The pattern is
  1. Government policy and poor regulation cause (or invents) a crisis.
  2. The government publicly and violently searches for culprits, aided by the MSM, and names the wrong parties--usually in the private sector.
  3. The government then rolls out a massive new law and its regulatory children to "fix" the problem as they defined it.
  4. The new law doesn't solve the real problem, costs a lot, and has massive unintended (but fully predicted) consequences, including setting the stage for the next crisis, which will be bigger and more damaging.
  5. Memory of the past crisis fades and everybody reluctantly adjusts to the massive new regulatory overhead.
  6. A new crisis occurs. The government publicly and violently searches for the culprits, aided by the MSM--looking exclusively in the business community...
and so it goes.


1 comment:

billmax said...

I think this book explores the concept pretty well, including the "ratchet" effect of government that never downsizes after the crises:

http://www.amazon.com/Crisis-Leviathan-Critical-Government-Institute/dp/019505900X

( Also available from Cato :) )

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