The Nexus of Government, Regulation and Business

For a while I’ve maintained that regulations actually help big business at the expense of their smaller competitors.  GE’s lobbying for the ban of the incandescent bulb is one example of this.

But a recent article in The Examiner of San Mateo County demonstrates how this works at the local level too: 

As city attorney, Dennis Herrera has very publicly shut down illegally operating nightspots and strip clubs. Now, his mayoral campaign is flush with cash from the strip clubs that benefited from such enforcement.

Records released Monday show Herrera received seven $500 donations — for a total of $3,500 — from strip clubs throughout San Francisco, including Déjà Vu Showgirls, the Gold Club and the Market Street Cinema

So don’t buy the meme that government is being tough on business when they impose regulations — odds are the regulations are only tough on certain businesses.


About Mystic Cowgirl

I worked overseas in the aid game for longer than I'd like to admit and learned several important things: 1) Third World countries aren't poor because America is rich. They're impoverished due to socialist governments that provide neither rule of law nor basic infrastructures; 2) These socialist governments redistribute wealth from taxpayers to the government workers. There's no benefit to the poor or downtrodden, and certainly not to the general welfare in terms of infrastructure improvements. 3) America is moving toward the Third World model. Rule of law has been subverted because equality under the law is disappearing as special interests carve out exemptions to regulations and special favors under the law. The redistribution of wealth to government began decades ago -- total compensation for government employees now outpaces salaries in the private sector.
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