Follow the Money
Lots of corporations and individuals complain about government regulation of their businesses and lives. The complaints come with much complaining about high taxes. Other than the paperwork involved with regulation, regulation is good for individuals and business. Making regulation a political issue is just that, politics. In some cases profits are affected, but in most cases, not so.
Let’s use ozone as an example. Ozone is toxic to us if we are exposed directly. It is beneficial in the stratosphere as it absorbs ultraviolet light, which is harmful to living things. UV light increases sunburns, contributes to skin cancers, and is an immunosuppressant. Worldwide, governments banned chlorofluorocarbons, chemicals used in refrigeration (Freon). The refrigeration industry fought the regulation, citing increased costs, lower profits, and job loss. Guess what? The Freon had to be replaced, and who had to do it? The refrigeration business. The increased regulation actually helped the industry and the ozone holes in the atmosphere began shrinking. The controversy continues, however.
Refrigeration prices increased, but were more than offset by the economic gains brought about by the change-over to safe refrigerants. More jobs, bigger refrigeration companies, more profits, all money going into the economy. The benefits more than offset the cost of eliminating chlorofluorocarbons. Public health gained from the reduction in sunburns and skin cancers worldwide. Everybody gained.
The same applies to the auto industry with all the safety and emission requirements. Car prices increased, but accident deaths and air pollution decreased. Everyone gained, and governments will profit from the fines Takata and Volkswagen will pay. My Toyota dealer profited from replacing dangerous airbags.
In economics the win-win effect of regulation can be explained by the multiplier effect. If money is spent, the recipient spends those dollars in payroll, capital investment, taxes, and a host of other things. Those dollars get spent, and the economy grows. This even applies to digging holes. People move to Denver and need a place to live. A developer decides to build an apartment building. He borrows money from the bank and hires architects, engineers, and contractors. The contractor needs to put in the basements and foundations. Thus, a need for a hole. He hires an excavation contractor who digs the hole. He is getting lots of business, so he hires equipment operators and laborer. He buys a new trackhoe from Caterpillar. The dirt has to be hauled away, so he hires a trucking company, and so it goes. Government benefits from tax revenue and the fees for all those permits. The revenue pays for more cops. On and on it goes.
The next time you hear someone say. “Get government out of the way.”, ask them if they know about the multiplier.