Chubby Nickel Audio Vlog

There is a misunderstanding going on about competition and businesses. One set of deceptive, dishonest people will say that no company is against competition because competition is good for business and fight to remove regulations, laws and punishments for those companies that seek to abuse the system. The other set of deceptive, dishonest people want a lot of regulation under the guise of protecting the people.

First to clarify: competition is good for business, but not good for a company. Competition results in higher quality products and services at lower costs. This is good for the people purchasing the products and services, but not so good for the companies providing the products and services. A company wants the biggest piece of the consumer pie they can get, and they try to provide high quality services for less than their competitors to attain that goal. This is good for the consumer. What happens if there is no competition? No competition means that a company can provide the same service for as much as they want and do not need to improve their product or service. This is good for the company and bad for the consumer. So competition is good for business but bad for companies.

Regulations are good for the people and small business but are bad for large companies and big business. Regulations do limit the power of big businesses which on a surface common sense level of understanding seem bad for business. Without any regulations, then any company can do whatever they want. Lead painted baby toys, disgusting old rotting meat for dinner and strong arm tactics to remove the competition. So to protect the people and small business, regulations are necessary.

Regulations are a way to relieve the legal system of law suits towards companies and also help to protect competition. Regulations serve to provide a system to prevent companies from doing things that would otherwise result in a law suit. If a company is prevented by a regulation to not allow lead based paint on childrens toys, then that prevents many law suits that would have resulted from making children sick. Regulations also prevent big companies from using their money and influence to wipe out small companies that compete with them.

When is regulation taken too far? That is not such an easy question to answer. My freedom loving side feels that no freedom should be taken unless that is the only way to prevent someone from taking freedom from another.  So my belief is that regulation goes too far when it is taking the freedom from a company for any purpose other than protecting the freedom of people or other companies. Regulation should never be used just for the sake of limiting freedom.