Government Regulatory I tervention in Canadian Bus Essay

This essay has a total of 843 words and 5 pages.

Government Regulatory I tervention in Canadian Business

Government Regulatory Intervention in Canadian Business

It is possible that Canada may be approaching the critical level where the economy is
being strangled; where enterprise is re-strained and where entrepreneurship is stifled.
But Canada could not dishevel itself that easily. Canadian business will not fall because
it doesn't like a few rules. Canadian business will realize that Government regulations
have a positive and effective role in society and should be commended, and not
scrutinized. Public choice theory explains that the Canadian Government will always strive
for pay, perks, and power, and there may not be much Canadians can do about changing the
incentive structure of the regulators themselves. But might it be possible to set up and
enforce by law, some principles of regulation to make interference more rational, more
effective, and less costly?

First of all, one would argue that the regulatory entity should always be at the lowest
level of government appropriate to the problem. This is really a democratic principle,
which allows each citizen to make an input on matters that concern him directly. The
example, certainly, is zoning for land use. In the area, the example would be garbage

A second principle, but just as important as the first, is to make sure that regulation
satisfies some kind of cost-benefit criterion. It is understood, of course, that the
regulation should be as cost-effective as possible--that is, of least cost to achieve a
particular goal. But is the goal itself worthwhile? Here one has to measure the benefits
that can be achieved and compare them somehow with the costs.

Another way to do this is by having people pay directly. Within the next few years,
motorists will face not only higher gasoline taxes but also greatly increased costs in
monitoring car emissions and in recharging or replacing air-conditioning systems. Perhaps
these and similar instances of direct, out-of-pocket costs will lead to a kind of consumer
revolution, which in turn can lead to an overhaul and rationalization of our whole system
of regulation. Recent history is replete with examples of policies instituted on nothing
more than press releases that were not backed up by scientific data. There are many
examples where science is ignored or misused in order to push particular policies. There
are even examples of where the science has reversed itself; yet the policies march on as
if nothing had happened.


It is easy to see why politicians, bureaucrats, and regulators would oppose such rational
approaches to regulation. It would restrict their freedom of action, limit their power,
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