MCViewPoint

Opinion from a Libertarian ViewPoint

Businesses are Regulating Themselves Before the Government Gets the Chance | The Daily Bell

Posted by M. C. Fox on August 26, 2018

So in that sense, if capitalism is just another word for corporatism or protectionism, then let’s hope it truly is dying off in favor of the free market.

That is what I see when Walmart beats the EPA to regulating its chemicals. And when cryptocurrency exchanges beat the SEC to regulating ICOs.

That’s free market regulation. And it is effective.

https://www.thedailybell.com/all-articles/news-analysis/businesses-are-regulating-themselves-before-the-government-gets-the-chance/

By Joe Jarvis

Is Walmart the evil harbinger of late-stage capitalism? Or is it the hallmark of a civilized society?

Walmart has been criticized for paying workers poorly. Then again, who else is willing to pay that 90-year-old above minimum wage to wave at customers as they walk in the store?

Because Walmart buys in bulk and uses cheap labor, it can keep prices ridiculously low. That provides a major service to poorer people. It increases their standard of living. Their money goes further. They can afford more of what they need…

Yet now they have voluntarily removed certain products because of the dangerous chemicals inside.

Walmart has banned two paint strippers from its stores because they contain chemicals believed to cause cancer…

The EPA has opted not to ban the chemicals, though at one point there were plans to do so. But this example suggests that even absent government regulation, certain companies are pro-active in protecting customers.

You might think Walmart only banned the chemicals to look good in the eyes of the public. And you might be right.

Who cares? Applying beneficial policies to satisfy the public is an effective form of regulation.

So it doesn’t actually matter how “evil” Walmart may or may not be. It responds to the demands of consumers…

A handful of cryptocurrency exchanges have joined together to form a regulatory group called the Virtual Commodity Association.

The initial participants in the VCA Working Group will include: Bitstamp, Inc., bitFlyer USA, Inc., Bittrex, Inc., and Gemini Trust Company, LLC. The Working Group will work towards the goal of establishing an industry-sponsored, self-regulatory organization (SRO) to oversee virtual commodity marketplaces. The VCA will have an executive director, independent board, and establish a framework for industry best practices. The VCA interim Executive Director will be Maria Filipakis. Ms. Filipakis was formerly an Executive Deputy Superintendent at the New York Department of Financial Services (DFS) and was instrumental in drafting the DFS rules and regulations for virtual currency…

At first, something like this might sound like collusion. And if I were them I would be worried about anti-trust suits. For all you know this could be considered anti-competitive practices by federal authorities. These laws are written so vaguely that practically any corporate behavior could violate them.

But when you really start to think about it, it makes perfect sense for these exchanges to regulate themselves. By banding together and voluntarily submitting to the rules the group comes up with, they can ease customer fears…

Again, the public does not have to depend on good intentions or honorable people. The desire for profits is enough to keep these exchanges honest. And going one step further to give an independent organization control over certain practices sends trust signals to potential customers.

The complaints of those who use the term late-stage capitalism are applicable only to the fascist crony capitalist system that we discussed yesterday. It is through government regulators that “capitalists” rig the system.

So in that sense, if capitalism is just another word for corporatism or protectionism, then let’s hope it truly is dying off in favor of the free market.

That is what I see when Walmart beats the EPA to regulating its chemicals. And when cryptocurrency exchanges beat the SEC to regulating ICOs.

That’s free market regulation. And it is effective.

Be seeing you

anarcho-capitalism

Anarchocapitalism

 

 

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