Government regulations: two sides to the story
Critics who blame regulatory costs for US economic problems fail to consider the benefits of the regulations and fail to distinguish the small contribution that new social regulation makes to the budget. It is important to separate the economic regulations designed to keep the economy running smoothly from the social goals of health, safety, and environment. Social regulation seeks to correct a market failure by including social costs in the price and reflecting the true cost of production. In contrast to Murray L. Weidenbaum's theory, social regulation needs to be reorganized into four categories: new social regulation, older social regulation, economic regulation, and miscellaneous regulation in assessing regulatory costs. The monetary benefit estimates that are available show positive net contributions in reduced morbidity and improved environmental quality. 5 tables. (DCK)