Wednesday, March 3, 2010

Understanding Regulation

Every day there are stories about how regulation prevents a good guy from fulfilling his passion. In this story, it's about someone who wanted to start a small farm in an area of King County, Washington which used to be filled with small farms (ah, I remember many a summer picking strawberries out in Carnation) but which is now filled with Microsoft mega-estates. Yep, there is open space, that is, unbuilt lawns for the large, gated estates.

What we don't really understand in our society is often regulation is meant to protect special interests. For instance, during the Northern spotted owl debates in the Pacific Northwest, large multi-national timber companies encouraged enforcement of the Endangered Species Act because they knew it would eliminate competition from smaller, more nimble logging companies. And indeed, the big companies survived, the small ones went bankrupt. But the cleverness of this "campaign" was the small logging companies thought it was the forest activists that wanted them out of business, not their so-called colleagues in the big timber companies!

And this story about the farm is another example. Surely the hip Microsoft millionaires shop in chic markets exclaiming local foods. But they just don't want the smell of manure next door to their "LEED Certified" houses behind gates. So they regulate farms away from their fancy homes....


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