Intelligent Regulation

The current push to reduce regulations needs to be considered from a systems perspective.  There is no doubt that regulations can become burdensome and interfere with productive activity when they are imposed without careful consideration of their impacts.  Regulations need to be continually reviewed as conditions change and modifications be adopted to match current circumstances.  Regulations no longer relevant should be eliminated, and other regulations need to be adjusted and trimmed on a regular basis.  But the current mania for across-the-board deregulation advocated by some groups seems misguided.  Often this comes from those whose interests would benefit if some pesky regulations and their enforcement were eliminated.  But other stakeholders are likely to suffer if the regulations protecting them are removed.  Regulation management needs to be done from as impartial a standpoint as possible, taking into account the interests of all of the stakeholders in a fair and balanced way.

Regulations are generally put in place to deal with problems as they appear.  For example, the set of U.S. Federal Aviation Regulations (FARs) is very extensive, covering aspects of aircraft design, aircraft maintenance, aircraft operation, airport design, air traffic rules, aviator and maintainer qualification and training, and many other aspects.  It has been said, with some credence, that almost every FAR has been established after one or many people have died in a flying incident.  Slashing aviation regulations would almost certainly make aviation in the United States more hazardous.

It is illustrative to consider the development of regulations governing road travel.  In the early days of automobiles, there were hardly any regulations on their operation.  This was because their numbers were still small and interactions were fewer.  But imagine deregulating road travel in today’s world.  We could get rid of speed limits; traffic lights; stop signs; lane markings; driver sobriety requirements, highway patrol officers; vehicular design standards, and all sorts of other annoying aspects.  And one should be able to drive on whichever side of the road one feels like!  Would anyone in their right mind want to venture out on the road in such a deregulated environment?

Regulations need to be managed intelligently, on an ongoing basis.  Doctrinaire deregulation is not likely to be beneficial to society in the longer term.