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| quote: | Originally posted by occrider
Well I've said it before and I'll say it again ... deregulation is the most efficient solution to the problem. That is of course provided that there are some regulations to correct for market failures and that the progression from regulated markets to deregulated markets is done smoothly such that oligopoly structures do not arise. In as much as there are no doubts that a regulatory agency such as the FAA is needed for the air travel industry, there is a need for some kind of a regulatory industry for the nation's energy grid. The fact that the regulatory body has been poorly implemented should not deter from the overall benefits of a deregulated industry. Personally, I see no indications that a fully regulated energy grid would have fared any better under the same set of circumstances. What, the all-omnipotent government would have forseen such a crises and maintained strict standards in spite of budget shortfalls? |
But what seems to happen in a deregulated market when such tragedies arise is the accountability and the consequences upon that given company who's responsible are pretty much next to nill. It's as if they shrug their shoulders and say, "Oops, my bad," and then hopefully they change their ways. As it's been shown in a number of cases, however, they do not because they can get away with it in the short term.
With governmental regulation, however, they are held accountable and their asses are in a serious sling with hefty fines and probably a good number of firings. They do not have a choice to cut corners.
IOW, I simply do not trust the free markets enough to allow self-regulation, because a number of companies continue to cut corners in order to save money (and hence remain competitive). Whereas with a little bit of outside regulation, they have no choice, and they must adhere to strict standards or else.
Besides, the history of deregulating utilities is pretty slimy, IMO, and I feel that basic necessities like water, gas, and electricity should have never entered into a free market. Of course, the money hungry utility/energy lobbyists with their politicians in their back pockets thought otherwise a coupla decades ago.
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Whence September dusk grows crisper still,
with leaves all crimson conquered,
I yearn to shout,
and dance about,
and stick pickles in my honker...
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. Effective regulations are needed until the majority of kinks are worked out. But as these industries become more efficient at self-regulation driven by demand, government intervention should decrease in response. Essentially my argument is not that deregulation is the absolute answer to everything, but that careful deregulation will lead to far more efficient industries than a regulated industry could ever hope to accomplish.
