Regulations and favoritism for the largest corporations / by kevin murray

Most people favor governmental regulations, especially when they are explained in a manner that strongly suggests that just such a regulation will provide a safer environment, or better quality control, or better consumer protection, and so on and so forth.  However, like many things involving governmental oversight and interference, there are ways, that the biggest and largest corporations can work hand-in-glove with such regulations, so that ostensibly it would appear to be of a real benefit to the consumer, but in actuality, such regulations are often structured in such a manner, that the largest corporations bear proportionally the smallest cost, whereas small and medium size corporations correspondingly are burdened with much higher cost and cumbersome bureaucracies to work themselves through.

 

None of the above should be especially surprising since, the biggest corporations in America, are not in the business of gambling with their futures, so in order to make things far more secure, a revolving door has been constructed between big business and governmental regulators, in which a quid pro quo has been initiated, so that those doing the governmental regulatory work, are able to easily find well compensated employment working for companies that they previously enacted regulations against, signifying that in the implementation of such regulations, they will be structured in such a manner that the biggest and connected corporations are well capable of absorbing this new cost of business, whereas smaller corporations are stuck with taxing, confusing, convoluted, and onerous regulations which appreciably increases their cost of doing business vis-à-vis their largest competitors, making it far easier for the biggest corporations to add and to extend their dominance over those that are attempting to take market share away from them.

 

All of the above, simply states a truism, which is, when specific corporations have regulations written in such a manner that the cost of such compliance with these regulations has less to do with the size of the corporation, but are essentially fixed costs in nature, than by virtue of the size of the larger corporations, those costs are more easily disbursed throughout the balance sheets of larger corporations, whereas smaller ones, have the onerous burden of having to absorb these costs while maintaining a significantly smaller staff to handle such as well as a more precarious balance sheet to take on these additional and unwelcomed costs, so that, in short, the costs of regulation are not only unequal, but clearly favor the biggest corporations, making them far more viable and profitable as compared to their lesser competitors.

 

Again, regulations in America, today, are not written in a vacuum, though it may be true that the principle behind a particular regulation is both noble and needed, the actual structure, the amount of pages, length, and clarity of such, and the effect of such regulations, more often than not, favor those that have the ear of the regulators, and favors not those that do not.  Not only does this mean, in actuality, that competition will be weakened, it also means because of the regulation itself, that the consumer of those products will end up paying more money for products than if the regulation had never been passed, which is great for the manufacturers of goods, and is a contributing reason why, the best connected corporations in recent years have been able to consistently increase their profit margins year after year