Saturday, October 21, 2017

Embracing Regulations ... Up to a Point

My first job after law school was at the Federal Communications Commission in the Common Carrier Bureau.  I worked on rulemaking proceedings designed to deregulate the telecommunications industry.  At that time, many of my fellow progressives were concerned that such deregulation would hurt the poor.   For years, they had argued that monopolization in that industry was needed to ensure the universal availability of cheap phone service.  According to this argument, deregulation would unleash the uncaring forces of a competitive market.  This could benefit affluent consumers, but the poor would be out of luck, as businesses could hardly expect to profit from subsidizing their phone services.   

Being that I was a young man who lacked either a crystal ball or a sophisticated understanding of telecommunications, I simply did my job and watched to see what happened.  Soon enough, the picture became clear; I witnessed a deregulation-driven revolution in telecommunications that has clearly benefited everyone, rich and poor alike.  

That didn’t stop me from being a progressive.  But it did stop me from being an ideologue.
For example, I developed a fear of monopolization and a love for accountability, market-driven or otherwise.  Years after I left the FCC, got married and began raising two daughters, my family took a trip to California.  We were staying for a few days with a friend in San Francisco and I needed to get a parking sticker for my car.  We easily spent two hours waiting in line at a government office to get that stupid little sticker, and I used half of that time to lecture my daughters about the inherent inefficiencies of government as a provider of goods and services.    Just think about the last time you visited the Department of Motor Vehicles in your town.  Those needlessly long lines didn’t just happen overnight; they emerged from decades of complacency and perverse incentives.     

In short, I didn’t want my children to grow up as “progressives” and not appreciate the limitations of government.  I didn’t want them worshiping at the altar of regulation.  But I also didn’t want them worshiping Adam Smith’s “invisible hand” either.  There are times when the free market simply malfunctions.  Upstream companies pollute and downstream neighbors pay the price.  Executives commit larceny by trick and then hire a bevy of lawyers to cover up the problem.  Consumers fall in love with dangerous products and suppliers inevitably arise to satisfy that demand – while innocent third parties are left to pick up the pieces.   We see these patterns as well.   That is, if we’re willing to look with unbiased eyes.

In the last couple of days, I’ve seen a number of articles that serve as clear reminders of why we need strong government regulations despite the inherent potential for overreach.  Yesterday’s Washington Post contained back-to-back articles reporting the results of pro-regulation studies that shouldn’t surprise anyone.  One article was entitled “Study ties loose conceal-carry laws to higher gun death rates.”  In other words, if you allow every Tom, Dick and Harry to secretly pack heat, folks are going to get pissed off from time and time and shoot somebody.   Makes sense, don’t you think?   Another article was entitled “Study links fewer recurrent concussions in young athletes to new state laws.”   In other words, if you require high school football players to stop playing when they’ve “just had their bell rung,” maybe – just maybe – they won’t have their bell rung so often in the future (and they might not ring your bell as often after they retire from football).     

To me, regulating the use of concealed-carry weapons or the ability of football players to continue playing with concussions is so obviously needed that it seems almost silly to have to argue the point.  And yet there are plenty of folks who oppose these types of laws because the government would be responsible for making the laws and enforcing them. 

Wednesday’s New York Times had an article about Moran, Texas, a small town that survives largely because of a plant that manufactures bump stocks, the gizmos that are widely viewed as being responsible for many deaths in the recent Las Vegas massacre.  You might not be surprised that in Moran, bump stocks, which serve to convert semi-automatic into automatic weapons, remain insanely popular.  According to one resident, “Guns don’t kill people. [Bump] ... stocks don’t kill people.  It could have been just as lethal, if not more so, with a good scope.”   

Blah, blah, blah.  Spare me the rationalizations.  To me, the problem is inherent in a capitalist economy.  You show me a person with an itch to buy something crazy and a wallet big enough to pay for it, and I’ll show you a second person with a willingness to scratch that itch and a hundred explanations of why they’ve done nothing wrong.    Sometimes, regulation is all that stands in the way of matching up those two people and ruining innocent lives in the process. 

We live during a time when America is divided into multiple sub-cultures.  In one, government is so despised that even sensible regulations are viewed with suspicion.  In another, the one with which I associate myself, government isn’t seen as a “necessary evil” at all – just a limited good.  Folks like me recognize that it’s not government’s job to dominate an economy, for nine times out of ten, the marketplace truly knows best.  But we also realize that if we let the marketplace decide ten times out of ten, the results can get very ugly, very dangerous, and very tragic.  


When it’s time to go to the ballot box next year, please listen closely to the way candidates talk about the value of government.  Are they respectful?  Or do they like to treat government regulation and government workers like piñatas?   Just as the Czars of Russia used to blame everything on the Jews, some politicians like to blame all of society’s woes on the public sector.  As a 32-year veteran of public service and a 57-year old Jew, you’ll forgive me if I’m sensitive about either type of demagoguery.           

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