THE REGULATORY STATE
by Dr. Lawrence Wilson
© March 2020, LD Wilson Consultants, Inc.
For the information in this article, we are indebted to Thomas Sowell and other modern-day economists.
Update April 13, 2019. An excellent organization fighting for your rights regarding regulation abuse is The Institute For Justice, based in Washington, DC, USA.
If you send them even a small donation such as $25.00 USD, they will send you their excellent magazine, Liberty And Law. It is also online at http://www.ij.org. It is filled with real-life stories. There is a need for many more legal groups doing exactly the same kind of work as this group.
Another group in the USA that defends people’s right to work against forced unionism is the Right To Work Foundation.
Definition Of The Regulatory State
Who Issues Decrees Today?
The Nature Of Laws – Background For This Article
Examples Of How Free Market Societies Help Keep their Citizens Safe
An Important Economic Principle
Expensive, Fuel-Hogging Automobiles
Forests That Burn Down
Washing Machines That Don’t Clean Clothing Well
Medical Care That Is The Third Leading Cause Of Death In The World
Government-Sanctioned Junk Food
Very Expensive, Toxic Patent Medicines
Environmental Filth Thanks To Your Government
Advantages Of Private Regulation
A Very Brief History Of Government Regulation
Can An Advanced Society Have No Regulation of Industries And Professions?
Can An advanced Society Be Made Perfectly Safe?
VI. Appendix – Examples Of Government Agencies In The United States
DEFINITION OF THE REGULATORY STATE
A regulatory state or nation is one in which:
- Many of its laws are not laws passed by the Congress, parliament or other legislative bodies. Instead, many of the laws are in the form of regulations or decrees.
- Laws are the result of government overreach. We are less familiar with the Constitutions of the European nations, Canada, Australia, New Zealand and most other advanced nations. However, we believe they contain few limits on government power.
However, in the United States, the national Constitution clearly and specifically limits the scope and power of the government. This limitation, a critical part of the US Constitution, has been fraudulently circumvented.
This was done by confusing the two jobs of the American Congress. These are:
- The Congress has total power over the territories and possessions of the United States.
- The Congress has very limited power over the states and the citizens of the states. The powers delegated to the national government are spelled out in Article I, Section 8 of the US Constitution.
The US Congress has passed a myriad of laws that really only apply to the territories and possessions of the United States. However, citizens, attorneys, judges and the legislators themselves are wrongly taught that these laws apply to the states and the nation, as well. They include all laws having to do with education, welfare, health care, and more.
DEFINITION OF A DECREE
A decree is the proper word for a law that is not passed by a legislative body. In the United States, the word can also be used to describe a law that is passed by the legislature with due process, but is outside of the limited powers delegated to the legislature. The word regulation is a newer and more politically correct word.
The word decree was used to describe the way that kings and queens ruled nations. They issued decrees and the people were expected to obey them perfectly. There were no other options.
If one did not obey, the king or queen sent their men, who were the roughest type of men. If you were a man who did not obey, you were beaten. If you were a woman, you were raped or just beaten, and maybe carried off if one of the men found you attractive.
WHO ISSUES DECREES TODAY?
Today’s decrees are proposed and enacted by:
- Employees of government agencies. For example, in America the agencies include the Environmental Protection Agency, the Food And Drug Administration and about 45 other agencies or departments of the national government.
These agencies are at the national, state, county, city and local levels. As a result, there are thousands of them.
- Members of the executive branch of the government such as executive orders issued by the president of the United States and similar orders issued by prime ministers around the world.
- Members of the judicial branch of the government. They issue injunctions and other decisions of judges, including those on the Supreme Court of a nation.
Issues such decrees is called legislating from the bench or judicial activism. It is a very bad habit that some judges have.
Once again, these decrees are not legislation passed by the representatives of the people, yet they carry the full force of law.
- Decrees are embedded in legislation passed by parliaments or the Congress of a nation. For example, a law may say “the secretary of health and human services can decide how to structure this or that aspect of health care. This is just passing the buck.
This tactic gives away the legislative power to unelected and unaccountable bureaucrats. These people then issue decrees, meaning regulations that are not enacted by the representatives of the people.
THE NATURE OF LAWS - BACKGROUND FOR THIS ARTICLE
Societies have different types of laws in order to maintain the safety of the people and prevent abuses. These include:
1. Moral laws. Examples are the 10 Commandments of Moses and the Golden Rule. Moral laws and codes are the basis for the society, even if this is not obvious. For example, based upon the 10 Commandments, Western nations have a set of criminal laws that outlaw murder, robbery, fraud (lying), rape, and other crimes.
Moral laws are very important for the safety and happiness of any society. This is no longer taught in school, but needs to be. A strong moral code that most people follow greatly reduces the need for other types of regulations because the people police themselves much more.
2. Constitutional laws. Constitutions guarantee certain rights and freedoms to the people, while giving other rights and powers to the government. Constitutions also set up the structure of government, such as the legislative, executive and judicial branches of government, and set up other governmental structures.
3. Statutes. These are laws passed by legislatures. In many modern societies, the legislature, congress or parliament is composed of representatives of the people.
4. Implementing regulations or just regulations. These are more specific rules and laws needed to implement or carry out the wishes of the legislature. Usually, the legislature allows these to be written by government employees.
This is where problems arise because the legislature does not oversee these people enough and they are tending more and more to micromanage every aspect of modern life. In some cases, the problem is that the laws are written improperly, giving too much power to unelected bureaucrats.
For example, in a free society, the specifics of the regulation of many aspects of life should be left up to the people and the marketplace. However, most modern societies are abandoning this idea today, instead trusting more and more details of product design and specifications to the whim of unelected government workers.
EXAMPLES OF HOW FREE OR MARKET-BASED SOCIETIES MAINTAIN PRODUCT SAFETY
- Citizens spread information about products and services through word of mouth, newspapers, magazines, radio and television programs and advertising, internet posts, websites and other means.
- Citizens are allowed to establish consumer safety organizations to advise others about the safety and efficacy of products and services. These groups put their “stamp of approval” on products and services that meet their standards. This is a powerful private regulatory system.
- Manufacturing companies are allowed to use branding, advertising, licensing, copyrights, and trademarks to inform people about product safety and other features of their products and services.
- The legal system or court system offers recourse if a person is harmed by a product or service. The basic mechanism is a right to sue for damages if one is harmed by a product or service. The judicial branch of government is also supposed to enforce a set of powerful criminal laws that include laws against fraud or lying, negligence, and misrepresentation.
- The executive branch of the government may also issue licenses (government permission) for the use of certain hazardous materials, for example, or certain manufacturing techniques.
Today this has been expanded to include licensing entire occupations such as medical care, accounting, legal services and many others in an effort to control all aspects of the occupation. The latter, once again, is basically socialism or communism, since it is simply government control over the economy.
MORE DETAILS ABOUT PRIVATE REGULATION IN EARLY AMERICA
For over 120 years in America, regulation was primarily accomplished via the free market. This was the plan of the founders for America. It worked the following way:
- There was (and is) a framework of basic criminal laws. These protect people against crimes such as fraud, libel, slander, negligence and misrepresentation.
- There was also a framework of basic individual rights. These included freedom of speech, freedom of the press (the right to publish freely), freedom to contract and associate with others, and a right to work.
- Other rights include the right to sue others or companies in court if they violate the law and cause damage.
- Citizens were allowed to establish private organizations that tested products. The groups gave products they liked their “seal of approval”.
- The media such as newspapers and radio were available to everyone equally. No one had a favored status with the media, as occurs today with government regulatory agencies. As a result, the product ratings were disseminated widely.
Products that carried the “seal of approval” sold well because people trusted them and because stores felt safe carrying these products. That is, people would not be harmed by these products. Stores might also be sued if they sell harmful products. Companies that made the good products prospered.
Products that did not carry the “seal of approval” did not sell well because people did not trust them and many stores would not carry them. As a result, the companies that sold the poorer quality products went out of business.
- The product testing organizations were in competition with each other. This helped keep them honest and fair. Also, if they committed fraud, they could possibly be sued. This also helped keep them honest.
- If a product testing organization became infiltrated by special interests, the citizens formed new testing organizations to take over the job of impartially evaluating products.
- No testing group was given “police power” by the government to shut down anyone they did not like. However, if a company produced a very dangerous product, in addition to a lawsuit, people harmed could perhaps get a judge to issue an injunction. This is an order to halt the sale of a product until a trial takes place.
This was the system of private regulation of the economy. No system is perfect, but this system cost the taxpayers nothing, was quite efficient, and fairly difficult to corrupt. This system worked very well for the first 120 years or so of the American republic.
AN IMPORTANT ECONOMIC PRINCIPLE
An important economic principle that applies to all laws and regulations of the economy is: Anything that gets between a buyer and a seller interferes with the integrity of the economy.
This economic principle is vital in any discussion of regulation because all government regulations get in the way of the relationship between buyers and sellers. Even voluntary methods of assuring quality of products often interfere with the integrity of the economy.
For example, if a write-up of a product or service is inaccurate, or worse, if it is malicious, it will lead people to make false assessments of products or services. Keep this economic principle in mind as we discuss the topic of regulation in more detail.
To fully understand today’s regulatory state, one needs to be aware of what we call the rogues on this website. This is a group of people who are based on other planets that have exerted a lot of control over the affairs of the earth for about 25,000 thousand years.
In the Bible, they are called Satan. This word means the secret ones in an ancient Hebrew dialect. This is a good description of them, although their activities are becoming more and more apparent to many people.
In order to control the people and affairs of the earth, they like planet to be polluted with toxic metals and chemicals. The main reason for this is to keep the people weak, sick and discouraged.
They also spread lies, false teachings and confusing information in order to keep people confused. This combination makes people much easier to influence and control.
This is the truth about our planet. The horrors of planet earth are not an accident or due to an absent or wrathful God. They are mainly deliberate acts designed to weaken and damage the planet and her people.
Books and other media call these assertions conspiracy theory. However, this term is derogatory and spread by the same ones who control us in order to discredit anyone who figures out the truth about them. Instead, they want us to blame God, governments, corporations, Jewish people or others for our problems. None of that is true.
The rogues are behind bad regulation, along with socialism, communism, occupational licensing, socialized medicine and other autocratic and tyrannical systems and aspects of government control. All of these methods are ways to control people, cleverly dressed up and disguised as “advanced theories of government” and other nonsense. For many more details, read The Rogues.
This section details a few examples of the worst failures of government by decree.
EXPENSIVE, GAS-HOGGING AUTOMOBILESS
Twenty years ago there was a lot of excitement in America about hybrid cars and electric cars. We were told this new technology would quadruple the gas mileage of most vehicles, clean up the air, and reduce oil usage.
Ten years ago, author recalls hearing that within 10 years, all the new cars would be hybrids because it is such a superior technology. Yet very little has come of this. We need to ask, WHY?
Hybrid car advantages. Perhaps hybrid cars are not that good. However, that is not true. Briefly, here are their advantages:
- Electric motors are much less costly than gas motors, in part because they have just one large moving part. In contrast, a gas engine has several hundred moving parts that can all wear out.
- Electric motors have full torque or power and most speeds. Internal combustion motors, however, have a very narrow range of RPM or revolutions per minute at which they have full power.
As a result, internal combustion-powered cars must have a transmission, whereas a car run by an electric motor does not need a transmission at all! To shift into reverse, one simply reverses the polarity of the motor.
Anyone who has had to replace a transmission knows this is a very costly and complex piece of machinery. The transmission also adds a lot of weight to the vehicle, which also reduces fuel efficiency.
Also, when the gas motor runs at the wrong speed it pollutes worse, so the whole engine requires lots of pollution control devices that add more cost and reduce engine efficiency. Electric motors do not pollute at all.
- Electric motors can be placed inside the wheels of a car or between the wheels on an axle. As a result, an electric-powered car does not need a drive shaft and differential gears, which are other heavy, bulky pieces of equipment that add cost and reduce the fuel efficiency of cars.
- Batteries used to run electric motors can be recharged every time one steps on the brake of the car. They can also be recharged by solar cells placed on top of the car or even towed in a lightweight trailer behind the car. This further reduces fuel consumption.
- Electric motors can be ‘loaded’ for a short period of time if there is a temporary need for more power, such as when passing another car, accelerating to avoid an emergency, or climbing a hill. However, one cannot do this with a gas motor. As a result, gas motors must be more powerful, which means heavier and using more gas, whereas electric motors can be of lower horsepower and still do a good job. This means they can be smaller.
- Electric motors in the wheels can provide two-wheel or four-wheel drive without needing extra drive shafts, universal joints, rubber boots and other machinery that is needed if one uses a gas motor. This also saves weight and cost, and makes the car simpler and much cheaper to maintain.
- Recharging electric batteries is much safer and much more environmentally friendly than having gas stations everywhere. Giant trucks have to deliver the gas and are a fire hazard. The underground tanks that hold the gasoline at the stations often leak after a while, and the entire station is a fire hazard.
- A hybrid car uses a small gas motor running at its optimum speed all the time to generate electricity for an electric motor whose speed varies with driving conditions. This makes much more sense than using an internal combustion motor for a job it does poorly.
- Electric motors and batteries can be recharged by any type of motor, not just the standard internal combustion reciprocating engine. This opens up many possibilities to recharge the batteries with a steam engine, an oscillating motor, a gas turbine or steam turbine, a tesla turbine (also called a boundary layer turbine), a fuel cell, or something else.
In fact, our current reciprocating gas engines are very inefficient and a poor choice! It is very outdated technology.
Also, car motors can run on water or HHO. The author witnessed a Chevrolet Suburban that had been converted to run on plasma – it used old coffee as a fuel. The system is called GEET. Over 100 years ago, Nikola Tesla had a car that ran on etheric energy, also called free energy.
Even using old technology, we could do a lot better. Around 1960, the author read a story in The Mother Earth News about how to convert your car to a hybrid. The conversion used an off-the-shelf elevator motor and alternator, and a 3-cylinder diesel refrigerator motor to generate power for the electric motor. The car they converted got 100 miles to a gallon of diesel fuel!
For more information, look for two movies: Who Killed The Electric Car and The Vapor Car.
Regulations are the killer. A few regulations that the Rogues and their friends in the oil industry insist upon have largely stopped the production of hybrid and electric cars.
Rule #1. Hybrid cars must have a dual drive system. This means that both the gas motor and the electric motor must be able to drive the wheels of the car. This is ridiculous! Gas cars only have one drive system and they are fine. Electric motors are much more reliable than gas motors, so there is no need for a backup system.
The result of this regulation is that the drive system must be much more complex, which adds tremendous cost and detracts from the efficiency of the car.
Rule #2. Hybrids and electric cars cannot use lead-acid batteries. They must use lithium batteries.
This is also ridiculous. Lead-acid batteries are at least ten times cheaper than lithium batteries. They have been around for years. We can safely recycle the lead without damaging the environment. Forcing the industry to use lithium batteries raises the cost of the car by thousands of dollars.
Rule #3. Hybrids and electric vehicles cannot use simple golf cart technology. This involves placing an electric motor between the rear wheels of the car. Also, the motors cannot be inside the wheels. Instead, the motor must be in the front of the car.
This is also ridiculous. Placing an electric motor between the rear wheels or in the wheels of the vehicle is simple, reliable and inexpensive. Putting the motor in the front requires adding a drive shaft and differential – a system of gears to transfer the power to the wheels. This adds cost and makes the vehicle heavier, reducing the gas mileage.
Rule #4. Hybrids and electrics may not use regenerative braking. This is the simple idea that whenever one steps on the brake of the car, it would recharge the batteries.
This is also ridiculous. Regenerative braking is one of the main advantages of a hybrid or electric car, making it much more efficient and, in fact, safer.
Rule #5. Solar cells cannot be placed on the roof of a hybrid or electric car to recharge the batteries while the car sits or drives in the sun.
This is also ridiculous. Many people leave their car outside in the sun for hours and drive in the sun all day. Solar cells on the roof would make a hybrid or electric car more efficient, further reducing fuel usage.
Together, these regulations have slowed the conversion to hybrid and electric technology to a trickle. It is on purpose. The rogues want is to use a lot of oil and pollute the planet with expensive and inefficient cars.
There are at least one hundred other automobile regulations that are also insane and make cars LESS safe, LESS fuel efficient and MORE expensive to buy, maintain and repair. It would require a much longer article to describe them all. However, this is just one example of regulation gone wrong.
FORESTS THAT BURN DOWN
Every summer, the Western states in America and other areas of government-owned and government-run forests experience terrible forest fires. These fires pour more carbon dioxide into the air than all the cars in America produce in a year. They are also very costly to battle, they destroy homes, kill lots of animals and plants, and regularly kill and maim fireman who are sent to battle the blazes.
A report on the radio a few years ago discussed the fact that such fires never occur in privately-owned forests. One must ask why?
The answer is regulations. The private forests, which are mainly owned by paper companies, cannot afford a fire because their forests are tree farms that keep the company going. So they have incentives to figure out how to prevent forest fires. They do so with regular fire breaks – clear-cut fire lanes that stop fires before they get large. They also use sophisticated surveillance methods to detect fires early. They build good roads in their forests so that fire trucks can quickly get to a small fire before it becomes a big fire.
In contrast, the United States Forest Service does very little to prevent forest fires. They must follow rules that prevent cutting of trees to make firebreaks.
Also, they have no incentive to prevent forest fires. Their department heads and bureaucrats don’t lose their jobs if the forest burns down. In fact, the Forest Service may get more money and the department head will control more employees and may get paid more if there is a “forest crisis”, so they have incentives to let the fires occur.
WASHING MACHINES THAT DON’T CLEAN CLOTHING WELL
In the past 10 years or so, the government has forced manufacturers of washing machines to sell expensive washing machines that save water and a little electricity, but clean clothing very poorly. There is not enough water to wash out the soap and the agitators hardly work, and may not even be present.
People are snookered into thinking they are getting the latest technology when it is really no good! We believe the real agenda is to make sure everyone’s clothing remains poisoned with toxic chemicals found in detergents that the machines do not wash out of the clothing very well.
If you think this is paranoid, so be it. However, the rogues love filth and disease, and absolutely hate cleanliness.
Thorough cleanliness and the ability of people to control this aspect of life is very important for safety and health. Cleanliness is one of the main characteristics of an advanced civilization.
The newest clothes washers are even worse because they contain electronic controls tied into wi-fi systems. The rationale is that one can control the machine at a distance with a cell phone. We believe the real agenda, however, is to give others (the rogues) the ability to monitor your every action, which is another rogue goal. For more details about the toxins in detergents, read Detergents.
MEDICAL CARE THAT IS THE THIRD LEADING CAUSE OF DEATH IN THE WORLD
Health care is one of the most heavily regulated sectors of the economy in all the nations of Western Europe, America, Canada, Australia and some Asian nations. Does all this regulation keep people safe? The answer is absolutely not!
In America, one is 9000 times more likely to be harmed by a visit to a doctor than by gun violence. By their own statistics, medical care is responsible for more disability and death than everything else in society except for cancer and heart disease. Here is why:
- In America, starting in the late 1800s, the American Medical Association or AMA lobbied for and succeeded in passing state medical practice acts, which is the licensing of physicians. This opened the door to a myriad of regulations imposed by licensing boards that destroyed the free market health care system that had served America very well for 120 years.
Among the horrors of this system are words that are “protected words”. They can only be used by doctors and no one else. They are the words diagnose, prescribe, treat and cure. Decrees literally forbid anyone from speaking these words unless one is a licensed doctor. This is thought control, a thoroughly Orwellian concept that the rogues love.
Medical licensing is just a form of government regulation that is fraudulently presented to the public as a way to protect people from harm. It really just protects the status quo and controls doctors. For details, read The Case Against Medical Licensing on this site.
- The AMA also lobbied for rules that outlawed community health associations. These were superb local health co-ops that served millions of people in America.
- Other laws and regulations include that individuals may not go directly to a laboratory to obtain blood, urine or other tests. One must go to a licensed doctor, who then orders the laboratory test. Also, lab test results may not be sent directly to the patient, even though the patient technically owns the laboratory result. All lab test results must be mailed to a licensed doctor only.
These two decrees can make the cost of a $10.00 lab test above $100.00 because two doctor visits are required – one to order the test and the other to get the result.
- The HMO Act of 1974 overrode state laws that forbade paying doctors to deny care to people. It paved the way for the establishment of for-profit health maintainance organizations or HMOs. Health insurance companies and other types of health provider groups also must comply with dozens of government regulations.
- HIPAA (the Health Insurance Portability And Accountability Act) was passed in 1996 and went into effect in 2003. The privacy rules that were the result of it destroyed the privacy of the doctor-patient relationship, which used to be sacred and is a necessary and important part of an advanced society.
As a result, patient information can be reported to up to 40 government agencies, including the Internal Revenue Service! For details read Hipaa – The Medical Privacy Scam.
- Hospitals are governed by hundreds of regulations originating from a number of government agencies such as the Environmental Protection Agency, American Hospital Association, Food And Drug Administration and a number of others. All the paperwork requires a large staff and adds a lot to the cost of a hospital visit.
- The Medicare and Medicaid programs passed in 1967-1968 contain thousands of pages of regulations. They are thoroughly unconstitutional but are allowed to stand because they rogues like them. They make people dependent on the government and they are bankrupting America, which they like.
- Medical schools, hospitals and most medical research facilities receive government subsidies, another type of regulation.
- The Affordable Care Act of 2010 (Obamacare) added over 2000 more pages of government regulations to the health care industry. It was sold to the American people as a way to reduce health care costs. Instead, it has raised health care premiums as much as 100%.
It is a horror. We believe it was purposely designed to fail so the nation would move on to a completely socialized medical system. For details, read The Affordable Care Act of 2010.
Just one of the outrages in this law is that American lawmakers exempted themselves from all the rules of Obamacare! They have their own health care plans that are much better.
A CORRUPT MONEY SYSTEM
This topic would fill an entire book. We will just mention some of the worst abuses, all of which are due to bad regulation.
In 1911, the US Congress passed the Federal Reserve Act, which created a thoroughly unconstitutional central banking system. For details, read The Federal Reserve.
This banking system allows fractional reserve banking, which greatly increases the profits of banks.
Regulations in America and around the world allow investment companies to use their clients’ money as collateral so they can borrow more funds and make a fortune without telling the clients or giving them any part of it.
In 1916, America approved the 16th Amendment to the US Constitution, which established the income tax. However, it was never ratified properly. In America, the income tax regulations occupy over 7000 pages of confusing rules and regulations that no one fully understands.
The income tax is so wasteful of time and money for individuals and businesses that most experts think it does not really generate any income at all. Other taxes are fairer, more transparent and much easier to collect. However, the rogues love the income tax because it forces people to disclose all of their financial dealings and confiscates the wealth of the people.
GOVERNEMENT-SANCTIONED JUNK FOOD AND VERY EXPENSIVE AND TOXIC PATENT MEDICINES
The Food And Drug Administration or FDA in America and similar agencies in every advanced nation are charged with protecting the food supply. In some ways, they do this well. However, they allow thousands of questionable chemicals to be put in our food. They also allow markets to sell lots of junk food and to lie to people that it is good food when it is schmutz. This describes most of the food that most people buy today.
The all-knowing FDA also allows aluminum to be in anti-perspirants, poisoning all who use them. Aluminum toxicity is associated with dementias such as Alzheimer’s disease and brain fog.
FDA regulations allow vaccines to be marketed that are responsible for an epidemic of autism, seizures, ADHD and other serious problem in our children. The decrees also protect vaccine makers from legal liability for their toxic products.
Decrees forbid supplement manufacturers from making many legitimate claims for their products. This is thought control and the abolition of free speech.
Many state food regulatory agencies forbid the sale of raw, certified milk, an excellent food product, while allowing the sale of thousands of sugar-laden and chemical-laden junk foods.
ENVIRONMENTAL FILTH THANKS TO YOUR GOVERNMENT
Some decrees in the environmental area have helped reduce the levels of toxic chemicals, toxic metals and other toxins in the environment. However, abuse is common.
An outrage of the Obama administration was an attempt to classify carbon dioxide as a poison gas that needs to be regulated. Carbon dioxide is the most essential gas on the planet earth. Without it, all plant life would die, and our death would quickly follow. Yet they want to reduce it! For details, read Climate Change.
Bad environmental regulations, for example, are the cause of the forest fires in the national forests of America and Canada. Bad environmental regulations also harm ranchers and farmers because they protect predator animals such as wolves and mountain lions.
Also, if a company complies with the environmental rules (which their attorneys often help create), the companies are difficult to sue even if they cause terrible environmental damage.
This trick is used by the rogues to poison the entire planet. Without the environmental rules, these companies would be sued out of business quickly and the planet would be much cleaner and healthier.
There is free market environmentalism. It is the best way to clean up the planet. However, it is very rarely taught in school or even mentioned. For details, read Free Market Environmentalism.
Many people are under the false impression that the only “real” regulations are governmental ones. This is simply not true! Private or non-governmental regulatory methods are very real, very effective, and better, in most cases, than governmental decrees.
This type of regulation is what the founders of America and of many modern European nations intended. Private and decentralized regulatory systems are also an essential part of the self-regulating quality of a free market or free enterprise economic system.
Without them, society deteriorates into a bureaucratic horror, as occurred in the former Soviet Union. It becomes basically a total or totalitarian government-run nation in which the people are basically serfs or slaves of the government.
This is socialism and communism and it is a primitive type of society, regardless of what the liberal and left wing college professors say to the contrary. Let us discuss private or non-governmental types of regulation.
PRIVATE REGULATION SYSTEMS
A. The legal system. Modern legal systems in free enterprise nations have a number of methods to help keep people safe.
- The right to sue. If someone causes harm with a product or service, most product makers can be sued in a court of law. This is probably the most powerful way that the legal system protects people from dangerous or ineffective products.
Today, unfortunately, certain groups have been declared exempt from lawsuits. Such exemptions (really just favoritism and old-fashioned corruption) cause severe problems in a modern society.
Medical personnel. For example, licensed doctors of all kinds are somewhat immune from lawsuits if they follow all the rules of their licensing boards. The most notorious of these groups are medical doctors and even naturopaths. They routinely poison, disable and kill people. However, they are hard to prosecute if they follow the “accepted practice” rules of their licensing boards.
They must do extreme harm to even be called before their board, and then they usually just receive a slap on the wrist or perhaps a temporary suspension of their license. In reality, many deserve jail time for poisoning people with Drugs, Vaccines, Toxic Herbs, Homeopathy and unnecessary and botched Surgeries.
Vaccine makers. Another notorious group that is exempt from lawsuits are vaccine makers. If this were not the case, vaccination would cease. Vaccines harm thousands of babies and children every year. In a just society, vaccine makers would quickly be sued out of business.
However, in the United States and most other nations, the injured and dead ones have little to no legal recourse! America has the National Vaccine Injury Program that is supposed to reimburse families of vaccine-injured children. However, it is largely a joke because the government is the judge and the jury. Even still, the government of the United States (the taxpayers), but not the vaccine makers, has paid out billions of dollars to injured citizens for vaccine-related crimes. This fact needs to be known and taught widely.
B. Criminal laws against fraud, negligence and misrepresentation. This is another powerful private regulatory system that affects all industries and all professions.
C. Marketplace feedback. If a product harms people or does not work, people tell their friends and write about it, and the word spreads. The result is that the product usually stops selling. The company that sells the product or service must either correct the problem or they go out of business. In either case, the problem is solved.
D. Insurance companies evaluate products and services. This is another totally private regulatory mechanism in all free enterprise societies. For example, the automobile insurance companies evaluate the safety of every automobile and every feature on cars.
Companies that insure homes evaluate and recommend products and services for the home. Health insurance companies evaluate medical procedures, operations, drugs and more and make recommendations based on their research.
Insurance companies must do this to determine how much they will charge for insurance. If an item is dangerous, for example, then the insurance company must charge more money to insure it. If a feature on a car such as an air bag or radar makes the car safer, they can charge less money if the car is so equipped.
E. Private consumer protection organizations review and test products. Examples in America are Consumer’s Union, Underwriters Laboratory, the Kosher certification program, organic food certification programs, the good housekeeping seal of approval, and there are many others. Some of these groups just publish their research. Others certify the safety of various products and services.
F. Blogs, websites, You tube videos, books, and magazine and journal articles. All of these sources of information help people to make informed buying decisions and help people to live more healthful and safer lives. Free access to this information is essential in a free enterprise society. This is why recent censoring of posts, videos and other information by Facebook, Amazon.com and Google are very worrisome trends.
These companies should be prosecuted for treason because their actions threaten the entire fabric of modern society. They have a responsibility to uphold the constitutional guarantee of freedom of speech. Instead, they are doing the opposite - trampling on people’s basic rights under the US and all American state constitutions.
G. Branding. This is a very powerful way to assure safety and quality in an advanced society. Companies can earn a reputation for quality or some other attribute based upon their brand name. This helps them sell their product or service.
Citizens are not interested in how much money the company can make. However, they are interested in safe, quality products. They learn to trust and then brand name products and services that will protect them from unsafe, fraudulent or low-quality goods.
For example, Toyota is a brand of automobile with a good repair record. People “buy the brand” to assure themselves they are getting a quality product.
H. Vendors, wholesalers and retailers who distribute products. Vendor and retailers often test products to decide if they wish to sell them in their stores or websites. They also have a brand name to uphold, such as Walmart or Costco. However, they also protect their customers from unsafe and low-quality products by refusing to sell them.
I. Copyrights, patents and trademarks. These are another integral part of an advanced society. The patent office was one of the first governmental offices set up by the founders of America.
Patents, copyrights and trademarks protect brand names and the companies that use them. they also protect inventions and inventors. They also protect authors, photographers and others from having their work stolen and copied illegally. All this helps technology move forward faster in order to make life safer and more enjoyable. Patents, copyrights and trademarks are another essential aspect of an advanced free market economic system.
Taken together, the above form a very powerful system of private regulation of the economy.
ADVANTAGES OF THE PRIVATE REGULATORY SYSTEM
1. Little or no cost to taxpayers. This is an enormous advantage of private regulatory systems over government decrees.
Private regulatory systems are usually paid for by those they affect the most, such as private companies and consumers. The legal system is partly paid for by taxpayers, but it is not a very costly part of government.
2. Efficient. Product reviews often spreads quickly and accurately via the media in an advanced society.
3. Choices exist. For example, if a private certifying organization does not do a good job or becomes corrupt, another competing group usually forms and will often supplant the failed one.
This never happens with a government bureaucracy! They have no competition and often just keep going, no matter how bad a job they do.
4. Their incentives are better. Private regulatory systems tend to have the correct incentives to serve their customers and the citizens of the nation.
Government regulators often want to hold on to their jobs and increase their importance. The more decrees they issue, the more they are needed, the more employees they require to police the nation and this makes their jobs more secure.
However, the quality of their decrees rarely or never impacts their job security, so quality often suffers. This and the situation in the paragraph above are called perverse incentives because they tend to make things worse in a society.
5. Private regulatory groups are often much “closer to the action”. In contrast, government decree-makers often work in Washington, DC or other centralized locations, far from the farms and factories for whom they issue decrees. As a result, they are often somewhat out of touch.
6. Corruption tends to be much less common among private regulatory groups. This occurs for a number of reasons:
- There are many more of them to corrupt, not just one government agency that issues decrees for an entire industry, for example.
- They are spread out all over the nation, making corruption more difficult.
- If private companies or private certifying groups become corrupt, there are more checks and balances to expose the corruption and either correct it or drive them out of business.
In contrast, government bureaucracies are difficult to purge of corruption, however, because of rules against firing employees, public sector unions (another horror) and other reasons.
Most private regulations are voluntary. For example, if a food company wants to comply with the regulations of the kosher group, for example, they are free to do so or not do so.
In contrast, government regulations are rarely voluntary and often backed up by harsh punishments such as hefty fines and jail time. One may also be visited by gun-toting government agents. Guns in the hands of anyone other than an officer of the law duly sworn to uphold the constitution of the United States is thoroughly unconstitutional in the United States, but it occurs often.
Government agents may burst in and confiscate products and computers, and in this way can shut down businesses overnight.
A situation that the author was somewhat involved in was a raid on the office of Jonathan Wright, MD, ND, a natural healing doctor in Washington state. It occurred in the early 1990s. A fully armed and camouflaged SWAT team broke down the door (they could have just opened it) to the doctor’s office during office hours, stole his computer hard drives and terrified everyone for several hours while they searched the office.
The doctor spent close to one million dollars defending himself and was forced to close his office for several weeks. No evidence of wrongdoing was ever found, but he was never reimbursed financially or in any other way.
This type of ‘show of force’ points out another big difference between private methods of regulation and government decrees.
Private regulatory methods follow the critical American legal principle that one is innocent until proven guilty in a court of law. Government regulatory agencies may assume that one is guilty until proven innocent and do not respect what is called due process of law – meaning that a person must be tried and convicted in a court of law with the proper rules of evidence and more.
This behavior is tyranny, communism and socialism, and nothing else. It is one of the worst aspects of government regulation and it occurs rather often. The stories of raids often don’t make the news, so few know about them.
Goon squads and SWAT teams are used to instill fear in the people and force compliance with stupid and often politically motivated decrees. The message is clear – we run the show and you will do exactly as we say, and it is not worth fighting back. This is very reminiscent of the “king’s men” who beat and raped anyone who did not respect the absolute authority of the king.
Another difference between private and government regulation is that private regulatory methods involve many diverse groups and consumers and manufacturers are often free to choose among them. For example, there are at least half a dozen organic food certifying groups in the USA alone, with many more around the world. Different organizations certify varying levels of safety and quality of products, and food companies and consumers can choose among them. These choices are very important for the evolution of a free society in which standards are changing as research emerges and for other reasons.
The certifying or regulatory groups also compete with each other for consumer popularity, so they have incentives to do a good job.
In contrast, government regulations are monolithic – meaning they all come from one agency charged with regulating an industry such as the Food And Drug Administration or the Federal Communication Commission. There is no competition. This is “neater” because there is only one place to go to learn about the regulations. However, it always causes problems with corruption, waste, and stupidity because these agencies have little incentive to really do excellent work.
For example, special interests such as the oil industry (car regulations) or the American Medical Association (health and medical laws) can more easily infiltrate one agency and influence it. One agency controls an entire industry so a special interest just needs to infiltrate that one agency and they control the entire industry.
This is nothing more than corruption, a major problem with government regulatory agencies and a major reason the rogues like them.
Government regulations are so common today we take them for granted and have accepted the false premise that they are the only way to make society safe. In fact, they tend to ruin every industry they touch. An example that is the subject of a separate article is medical licensing laws, along with all occupational licensing laws. For details, read The Case Against Medical Licensing.
A VERY BRIEF HISTORY OF GOVERNMENTAL REGULATION
Government regulation of the economy is an ancient practice all over the world. Economies have often been controlled by rulers in most nations for their own benefit.
Great Britain, for example, had the British East India Company that controlled and essentially ran the economy of India for many years. The revolt of India against the British in the early years of the 20th century was motivated in large part by hatred for this type of colonial control over the economy.
America started out with a fairly free market economy, but it did not last too long. By the mid-1800s, laws had been put in place that began to restrict the economy. These laws favored the more industrial Northern states over the more rural Southern American states. Bitter disputes over economics, and not just over slavery, led to the American Civil War.
After the Civil War the problem of how the economy would be regulated continued in the United States. Things took a sharp turn for the worse under the presidency of Theodore Roosevelt. His role in changing the United States from a free market nation to a more socialist one is rarely mentioned in history books.
Theodore Roosevelt oversaw the formation of the Bureau of Chemistry (later called the Food And Drug Administration) and other government regulatory agencies. This time in American history is called the progressive era, but should be called the socialist coup or takeover of the United States.
The American economy is still freer than most European nations, but it is heavily socialized, meaning loaded with government regulations, which we want to emphasize are a form of tyranny – meaning they are not controlled by the people or their representatives.
As a result, supposedly democratic societies are now run in a fairly dictatorial or tyrannical manner by regulatory agencies.
STUPIDITY OR VAMPIRISM?
Government regulation of the economy often appears rather stupid. Reasons for this may be:
- Bureaucrats often live thousands of miles from the farms, factories and other industries that they regulate. It is therefore difficult for them to keep up with the latest technological innovations.
- Corruption leads to bad decision-making.
- Bureaucracies are plagued by perverse incentives. This means that excellence is not their primary motive. Instead, they often wish to preserve their jobs, please their bosses, satisfy politicians who try to control them, and just keep things running smoothly to reduce their work load.
- Bureaucrats are not elected and are difficult to fire. As a result, they are not accountable to the people and this reduces their incentive to do a good job.
- The types of people who apply for and are hired into bureaucracies tend to be people who want security in their jobs, rather than the brightest minds.
The apparent stupidity that results:
1. Stifles innovation.
2. Entrenches monopolies and cartels.
3. Costs millions of jobs
4. Frustrates and infuriates the population.
5. Criminalizes the people
6. Sickens the people.
7. Deprives the people of the fruits of technology and human creativity.
8. Wastes the people’s money. Someone must pay all the bureaucrats to write the regulations, and they are high-paying jobs. Government is notoriously inefficient, so that also adds greatly to the cost of the regulatory state.
Vampirism. However, there is another possibility that this author has come to understand. It is that the real intent of many bureaucratic decrees is to upset and frustrate people in order to steal their energy.
In other words, stupid-appearing government decrees are not really stupid. They can be calculated to subtly suck the life out of the population. This is called energy vampirism, a very real phenomenon. For details, read Energy Vampirism.
Another problem with some government decrees is that they can have rationales that are deceptive. For example, increasing the scope and power or reach of the government is often a hidden goal of government regulation.
Another hidden agenda is enriching friends and donors to the president’s election campaign and punishing the enemies of the party in power.
Another hidden agenda is to gradually move the nation in a certain direction. For example, it is clear to this author that The Affordable Care Act of 2010 (or Obamacare) was calculated to raise health insurance premiums, and thus to fail to deliver on its promises. We do not think the framers of this law are so stupid that they did not know this.
We think their real agenda is to move the United States into a single payer medical system. This is a euphemism for socialized medicine.
The idea was that when the Affordable Care Act failed, the politicians and their friends in the media would explain to people that the only real alternative is socialized medicine. That is exactly what is occurring at this time (April 2019).
CAN AN ADVANCED SOCIETY HAVE NO REGULATION OF INDUSTRIES AND PROFESSIONS?
NO. This never occurs. This is important to understand because there is an attempt today by the rogues to convince people that some products and industries are “unregulated” and therefore dangerous. This is a pernicious lie!
In fact, if an industry or product today is not heavily regulated, it is mostly likely one of the safest products available! In other words, the truth is the exact opposite of what we are often told on television.
An example is that one often hears on television and elsewhere that nutritional supplements are unregulated. This is pure lying and just a subtle way to scare people away from these excellent and necessary products.
Nutritional supplements are subject to all the legal protection consumers have against product makers. For example, one can sue for damages if a product harms one or if any product does not contain what it claims to contain. In addition, the Food And Drug Administration and other government agencies have plenty of rules that supplement manufacturers must follow.
Another common lie is that unlicensed healers such as nutritionists are “unregulated”. This is also pernicious. In fact, the opposite is true. Unlicensed practitioners are more subject to prosecution under the criminal laws than are licensed health personnel. Medical and naturopathic licenses protect them, and for this reason they do much more damage to people than unlicensed practitioners!
Remember the principle – No one should be exempt from lawsuits for any reason in an advanced society.
CAN AN ADVANCED SOCIETY BE MADE PERFECTLY SAFE?
This is an important question because better safety is the rationale for most government agency decrees. Regulations, we are told, are for consumer safety, environmental safety, animal welfare or other kinds of safety.
However, perfect safety in a society is not possible. For example, innovation requires some trial and error. Safety should only be one criterion to determine the need for regulation of any kind.
Other factors are the effect of the new rule on commerce, on health, the cost to consumers and businesses, and perhaps other factors such as the hidden impact of regulations upon families and more.
Weighing all of these factors is very difficult for anyone to do, regardless of training, background or intelligence. In practice, free and open markets are the best way to assess and take into account all of the above factors. However, bureaucrats and the rogues cannot control a free market system so they tell everyone it would never work and is a bad idea, when this is not true.
1. Education. Everyone needs to understand the differences between private regulation and government regulation, and the evils of government regulation. This is the main problem because the subject of regulation is rarely taught properly in high school, college, law school, business school, etc.
2. New Legislation. There is some pending legislation in America that would require that the Congress approve all new major regulations (HR 427 or the REINS Act of 2015). It passed the US House Of Representatives, but so far not the US Senate, so it is not yet the law of the land.
3. Sunset provisions. This means that ALL regulations would expire after a certain time, such as 10 years. Then every regulation would have to be reviewed and passed again to continue. This would help, but is certainly not the whole answer.
Examples of government regulatory agencies in the USA. (Other nations have a similar setup). These include The Food And Drug Administration, Department Of Agriculture, Federal Communications Commission, Federal Trade Commission, Environmental Protection Agency, Occupational Safety And Health Administration, Health And Human Services, Consumer Protection Agency, Housing And Urban Development Agency, Equal Opportunity Employment Commission, Labor Department, Agriculture Department, Federal Power Commission, Security And Exchange Commission, Federal Emergency Management Agency, Bureau Of Indian Affairs, National Forest Service, Bureau Of Land Management, Internal Revenue Service and the Veterans Administration - and the list goes on. The USA currently has about 47 of these agencies.
Book recommendation: Death By Regulation by Mary J. Ruwart, PhD, Sunstar Press And Liberty International, 2018.