Why Capitalism Cannot be Tamed

A little more than a year ago, I posted a note using football as a metaphor for the futility of effective regulation.

 

https://michaelperelman.wordpress.com/2009/09/13/the-futility-of-financial-regulation-lessons-from-science-and-professional-football/

 

Some people dismissed the football metaphor.  The Wall Street Journal today has a story about how people design new psychotropic drugs to get around regulation.  It may be that these new drugs are more dangerous than banned drugs.  In all likelihood, they can design these drugs faster than the government can make regulations.

 

How in the world can regulators get ahead of financial industry or tax lawyers, even if the lobbyists were not writing the regulations or the tax codes.

 

Whalen, Jeanne. 2010. “In Quest for ‘Legal High,’ Chemists Outfox Law.” Wall Street Journal (30 October).

http://online.wsj.com/article/SB10001424052748704763904575550200845267526.html?mod=WSJ_World_LeadStory

2 comments so far

  1. Lord Keynes on

    I think the answer is vigorous supervision of financial institutions in a proper regulatory system. Canada seems to have done it.
    No system is perfect, but if it is reasonably effective, then it is surely justified.
    On the issue of capitalism, we abandoned 19th century laissez faire capitalism in the 1930s/1940s.
    We have a mixed economy that has gone horribly wrong because of neoliberalism and new Classical economics. The task is to rebuild the mixed economy and make it a vibrant, successful system of the type that existed from 1945-1970, making the appropriate changes.

  2. purple on

    People are still thinking we can go back to the Golden Era, , which is going to be seen historically as an anomaly.

    Canada is doing well because it is exporting raw goods to China, whose economy is based on the militarized control of its peasant class.


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