Regulators and policymakers have been on a crusade for nearly two years now. The premise for the crusade is simple, succinct, and utterly unreasonable: all choices affect others; therefore, all choices must be strictly regulated. There are times when choices do explicitly affect others. A young man with a history of drunk driving offenses gets in his car early in the morning after “having breakfast with his parents”, say. He runs a stop sign and hits a young mother and her child, killing the mother instantly. He flees the scene and pleas to a minor offense. It takes decades for the child to find out who killed his mother, and it is only exposed because the killer is now a well-known and successful politician. The story is all too familiar, and Canadians may have even heard of a similar tragedy. I’ll leave that story for another time, though.
The Agency problem
The Agency problem
The Agency problem
Regulators and policymakers have been on a crusade for nearly two years now. The premise for the crusade is simple, succinct, and utterly unreasonable: all choices affect others; therefore, all choices must be strictly regulated. There are times when choices do explicitly affect others. A young man with a history of drunk driving offenses gets in his car early in the morning after “having breakfast with his parents”, say. He runs a stop sign and hits a young mother and her child, killing the mother instantly. He flees the scene and pleas to a minor offense. It takes decades for the child to find out who killed his mother, and it is only exposed because the killer is now a well-known and successful politician. The story is all too familiar, and Canadians may have even heard of a similar tragedy. I’ll leave that story for another time, though.