1.17.2009

The Economist

"Law v common sense", The Economist, 1.17.2009, 38.

The direct costs of lawsuits are only one of the drawbacks of an over-legalistic society. Too many rules squeeze the joy out of life. Doctors who inflict dozens of unnecessary tests on patients to fend off lawsuits take less pride in their work. And although the legal system is supposed to be neutral, the scales are tilted in favour of whoever is in the wrong. Because the process is so expensive and juries are so unpredictable, blameless people often settle baseless claims to make them go away. The law is supposed to protect individuals from the state, but it often allows selfish individuals to harness the state's power to settle private scores.


"Not playing", The Economist, 1.17.2009, 64.

Rumours of an impending closure caused suppliers to pull back deliveries and workers to demand salaries in advance. 'I learnt that without confidence, a business is dead,' says Smart Union's founder, Tony Wu. The firm essentially shut down in September, despite having a heavy backlog of orders.


"Growing insecurities", The Economist, 1.17.2009, 73.

Mr. Obama has talked about the need for regulatory consolidation. Mary Schapiro, who is due to succeed Mr. Cox at the SEC later this month, pending Senate approval, has publicly advocated merging the two agencies. This would require a doctrinal ruling, since the Commodity Futures Trading Commission's approach is far more principles-based than that of the SEC, which cleaves to hard rules. It would also call for some deft politics, since they are overseen by separate congressional committees, for whose members disbandment would mean an end to juicy campaign contributions from financial firms.

[congress is no more eager to regulate business than business]

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