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Ask What Your Country Can Not Do For You September 1, 2007

Posted by federalist in Government.

John Semmens offers an example of how government can do better by regulating private businesses to provide a service than by trying to provide the service itself:  State motor vehicle departments get in the way of licensing and certifying drivers when all we really need the government to do is to ensure that every person on the road has enough money to pay for the damage he could reasonably cause in an accident.  (This theme was touched on earlier w.r.t. weapons.)

Assign responsibility for vehicle safety inspections and licensing drivers to the one institution with the most to gain from keeping bad drivers and unsafe cars off the road: the insurance industry.

Worth reading in full.



1. federalist - February 6, 2008

Bryan Caplan summarizes statistics on occupational safety regulation (my emphasis):

Market incentives for worker safety dwarf legal incentives, which in turn dwarf regulatory incentives. The level of safety we see in the workplace today is about the same as the level we’d see if government just looked the other way.

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