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Richard North's avatar

Deregulation was extremely fashionable is the 90s when Booker and I spent a great deal of time and effort in pursuing that agenda.

Among the many things we found was that the utility of regulation often depends on the quality of enforcement. Poor regulation can be made to work by skilled and experienced enforcers but even good regulation can fail if poorly enforced. Thus, in many areas, the onerous impact of the state can be mitigated not by cutting back regulation but by improving enforcement.

But our most startling finding was that - as we reviewed the waves of deregulation since the war, here and in other developed countries - rapid deregulation was always a precursor to more regulation.

The explanation for this was that most regulation had been enacted for a purpose and even if the original purpose had been forgotten, it still served a function. Thus, when the regulations were cut, all sorts of problems occurred which gave rise to public calls for remedial action. The net effect over the years was to end up with more regulation than we started with.

There has in fact been a great deal of academic and practical work done on the nature of regulation, and the mechanisms for improving it. A reasonable conclusions from this is that sweeping gestures do not work. Re-regulation rather than deregulation is the most effective strategy, using a scalpel rather than a sledgehammer.

To Lowe, therefore, I would respond that "we've been there before and what you want will not only not work, it will be positively harmful".

Over the years, having put such a great deal of work into this issue, I tire of Johnny-come-lately Messiahs who think they have suddenly discovered the answer to life and everything, when all they are doing is rehashing the same failed nostrums that have previously been tried and failed many times.

The trouble is that these nostrums look attractive at a superficial level and attract the support of people who have given them as little thought as their authors. This creates a wearing, sterile cycle where every decade or so, the same empty ideas are floated which run their course and disappear. Rarely is there any progress.

And before leaving the subject, it is worth thinking what a developed, organised society really it. When it comes down to it, the society is its book of rules, which work because people subscribe to it. You meddle with this at your peril.

Anthony Stone's avatar

Like you, I'm growing weary of Rupert's simplistic crowd-pleasing announcements on X. I wont take any of them seriously until they start to address root causes, rather than symptoms, but there's precious little sign of that.

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