Who Benefits from Regulations

Boyes asks the question "Who Benefits from Regulations?"

This question is at the heart of the work of Buchanan et al in Public Choice Economics.

The answer is

Individually we all potential gain.

Collectively we all will lose.

The logic here is clear - gains from regulation are concentrated upon those who advocate for regulation, while the cost is diffused throughout society.

This leads to a moral quandry - do I accept a regulatory benefit that costs society - both currently and in the future?

The answer is, I do and we all do. At my institution there is a union and collective bargaining. The union requires certification (a regulation) for employment. Thus Bill Gates, Warren Buffet and Steven Jobs cannot be employed at my institution, due to regulation.

Do I receive a benefit from this regulation? You bet. Do I decline the benefit. No. Do I advocate against the regulation? You bet.

My brother, self employed in the private sector, labels the above hypocritical. He asks, why not take your labor to an unregulated part of the economy?

My response - there are only less regulated areas of our economy. This is, of course, an unsatisfactory response.

My second response - I advocate for a free and responsible society from my position - as a protected by regulation, public sector employee. This is, of course, an unsatisfactory response.

It is a curious moral dilemna in which I find myself. Regulation allows me to earn a rate of compensation far, far above the market. Further, I enjoy complete job security, fringe benefits far above the market and a pension (defined benefit) that is essence a transfer from taxpayes to . . . . me.

I spend some time reflecting on this paradox - I hold deeply to the views of liberty and responsibility - how responsible am I, really.

And am I representative of Joe Lunchbucket? Nope, Joe Lunchbucket does not have the protected rents I enjoy.