Criticism Of Economic Regulation

Some economists said economic regulations has the considerably limits and also they argue that government should limit its involvement in economies to protecting negative individual rights rather than diminishing individual autonomy and responsibility for the sake of remedying any sort of putative market failure. They tend to consider the idea of market failure as a misguided contrivance wrongly used to justify coercive government action to further various political agendas, such as mercantilist or egalitarian goals. And these people consider that government involvement creates more problems than it is supposed to solve as well-meaning as some of these interventions may be chiefly because government officers are unable of accurate economic calculation, lacking any reliable ability to gather, integrate, or honestly evaluate the vast amounts of information that guide the Invisible Hand of a free market. And other argue is the minimum wage law, they said it cause unnecessary unemployment, for the same reason that a minimum price on anything will decrease the quantity of it that people purchase. If a minimum wage law is passed that makes it illegal to pay less than M per hour, employers will continue to keep on payroll only those workers whose hourly work brings in more than M in revenues. Another argument against regulation is that laws against insider trading reduce market efficiency and transparency. If a firm is "cooking the books," insiders, without restraint on insider trading, will take short positions and lower the share price to a level that aggregates both insider and outsider knowledge.