Gustavo Ballvé on February 22nd, 2012
Food for thought, Home, Mental models, Portfolio Management

This article by actually makes for interesting food for thought regarding Brazil and other highly-regulated economies. If the USA has it rough, how do we have it here? Some interesting tidbits valid for all over-regulated countries:

“The problem is not the rules that are self-evidently absurd. It is the ones that sound reasonable on their own but impose a huge burden collectively.” (…) “Far from preventing abuses, complexity creates loopholes that the shrewd can abuse with impunity.” (…) “Complexity costs money.” (…) “(It is) Far better to lay down broad goals and prescribe only what is strictly necessary to achieve them. Legislators should pass simple rules, and leave regulators to enforce them. Would this hand too much power to unelected bureaucrats? Not if they are made more accountable. Unreasonable judgments should be subject to swift appeal. Regulators who make bad decisions should be easily sackable. None of this will resolve the inevitable difficulties of regulating a complex modern society. But it would mitigate a real danger: that regulation may crush the life out of America’s economy.”

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