I imagine that most of my readership will be familiar with the term "regulatory law," or at least its definitions, and if not that, then at least its currently existing examples. When I speak of regulatory law, I am speaking of laws imposed (either by a collective will or by coercion of a ruler) on the public, which seek to regulate certain activities in order to prevent certain corruption, excesses, and other undesirable effects. A regulation is not a prohibition -- it doesn't cut off the stream, so much as it narrows the channel. The idea behind a regulatory law is that to cut it off completely, or to let it flow unhindered, that both of these extreme policies are either impractical, impossible, or produce more harm than good.
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A good example of regulatory law would be an act proposed by congress that limits the amount of forests logging companies are allowed to cut down. If they allowed loggers to cut down as many trees as they want,Of kuwait indemnity calculator Law Articles the result would be heavy and damaging deforestation; whereas if they didn't allow any loggers to cut down any trees, the result would be a lack of available timber. One option damages the ecology, the other damages economy. Some may say that the law being passed is a compromise between environmentalists and business executives, but this isn't exactly accurate. A congressman or senator might look at the situation and feel both the needs of environment and economy, and feel that such an act regulating the lumber economy would produce the greatest benefit for the nation.
An example of a restriction, or a "prohibitory law," would be nearly any form of crime that has existed for the past millenium: threatening someone's life, attacking someone unprovoked and without cause, killing someone, stealing someone's property, etc., etc.. There is no leeway with any of these crimes. As far as the law is concerned, there is just cause in completely cutting off the flow of any of these actions from happening. And the legislators have just cause to believe their decision is right. Here, I hope I have clarified the difference between a regulation and a prohibition, and the importance of recognizing the difference. As my readership should be well aware: I have written at length elsewhere about basic functions, mechanics, and behaviors of the economy, responses and reactions to certain stimuli by economic agents, etc., etc.. And, as well, I have also proposed certain ideas and thoughts that could be manipulated by statesmen to enact a much more just form of political economy. By the term "a just political economy," I am implying an economic system where wealth distribution aims closer towards those who produce the wealth (the real meaning of justice), while mainting a higher, more dignified regard for personal rights of the individual. I am not going to describe any of these suggested reforms right here, because they are available to my readers and I have succinctly made my point about the difference of regulation and prohibition.
Regulatory law is where Socialism meets Liberalism; or what might be called the highest form of Liberalism, the lowest form of Socialism.
Human society and its laws may accurately be called a translation of personal society and ethics. The rulings of a society's high courts and congresses usually reflect some degree the opinion of the people in that society. Humans have used regulation as a personal ethic in countless cases. There is the often-quoted, ill-practiced "all things in moderation" -- what some have mistaken as an equivalent for "abstinance." As a very simple example, take a man who will drink only six beers every night, and not allow himself to drink more than this. His reasons might be plenty and quite justified. Perhaps the desire to intoxicate is still present after six beers, but after six beers, the intoxication obtained is displeasurable or overly-impacting. Or, perhaps, the desire to intoxicate is even more present, and the pleasure obtained from drinking more than six beers is even greater, but this man knows that it will only bring him pain, misery, and a hell of a hangover in the morning -- so, he makes a logical decision and decides to set a limit for himself; he refuses to drink more than six beers. Maybe this is an incredible person, and he is capable of restricting himself to only six beers even in social situations where everyone else drinks three times as much as he does. Whatever the reason or desire, it is quite clear that this man has put a regulation on himself: he has decided that to let some of the water flow in the riverbed is better than either no water or all the way. Essentially, regulatory law operates as a restriction to a desire that would otherwise cause greater harm than good. From man's ability to tame, conquer, and regulate his own desires so as to create the greater good for himself and his conscience, there arrose laws from man's society on restricting certain behaviors. And this, my dear reader, is regulatory law.
Now, an obvious question right now might be: why? Why should we study regulatory law? What purpose and, effectively, what use could it possibly offer us? To answer these questions, allow me to say this much. It is quite clear to all of us that we live in a changing world that has been evolving since the dawn of time. Cultures, customs, sciences, and practices have been adaptating to new environments, assimilating to new people, and reaching exitinction when the will to evolve was as weak as the will to survive. For as long as mankind has been around, we have striven to improve ourselves, and for as long as mankind has been a collective, we have striven to improve ourselves and those around us. At least, this can be honestly said of all individuals who have been honest, thoughtful, and humane. As we have each personally evolved to regulate our own behaviors and to control our habits in a way that is most beneficial to us, so too has society created regulations and restrictions and prohibitions. However, these regulations are not as simple or as complete as a few sentences can make them seem to be. There are many implications, many unseen effects, many subtle variations to the overall mechanics of the Beast. It is the purpose of this essay to study these often overlooked effects that regulatory law can have.
The reason why regulatory law exists, obviously, is to create an overall positive impact upon society. For example, the Minimum Wage Law as it exists is there for the sole purpose of putting more money in to the pockets of the laborers. This has been viewed in the eyes of many liberal and progressive reformers as an overall good. (Needless to say, there are Conservatives and Right-Wingers who believe that the laborers are undeserving of the wealth they create -- but, I have spitted them plenty elsewhere.) There is also the Usury Law, a law that regulates the interest rate of loans. It is common that the Usury Law prevents an interest rate being higher than 50%. So, if you borrowed $500, depending on the state you lived in, for the loan you could only be charged $250, or a total of $750 once you pay it all back. There are Libertarians who attack the Usury Law, arguing that it is an unnecessary interference in the economy by the government, but it is viewed by the majority as an acceptable, agreeable regulation that creates an overall positive impact on society. There are environmental regulations, such as how many trees may be cut down per year, protecting the world's natural habitat. However, as it so happens, most regulatory laws are found in effecting the economy, but their principle is just as strong in any other field.
The positive impact of regulation can easily be seen. However, there are many unforeseen negative effects that can be caused by regulation. For example, as a pure hypothetical, perhaps the higher the minimum wage is increased, the more businesses will fire employees. I imagine that many hired hands perform very simple, very basic functions (the integrity that is Capitalism) from everything from busting tables to handing out free candy samples to obnoxious children from consumerist parents. These employees would have their jobs at staket he most, because the actions they perform at their job are much more dispensible than those of the clerk, the manager, and the many other occupations responsible for production and distribution. And, in a world economy where every corporation is trying to maximize profits and minimize costs, of course those employees with near-useless job status will be at risk for losing employment with an increase in minimum wage. Or, perhaps, if the American government decides to enact a law requiring every manufacturing plant to have safe and clean working conditions, then companies will move overseas, forcing children to work for pennies an hour in hazardous work -- as we currently see happening in our world today. Perhaps a local government will enact a law requiring every employee of every trade to be provided with a full medical plan and a full dental plan. And, while the intentions of this law may be to help the downtrodden, the effect could be an increased unemployment. With unemployment on the rise, workers who have a job are more willing to hang on to their employment. They would willingly take pay cuts, or work extra hours, if it meant they can keep their job. Essentially, the effect of the law would lower pay and jobs. While the laws of the collective will of the people can regulate certain actions and try as hard as possible to create a more just society, it must be understood that every person is an individual, operating according to their own interests. To the Capitalist class, their interest is a maximization of profit and a minimization of cost; they will constantly strive towards these two things (which are interchangeable almost). While the law can restrict how far the Capitalist class attempt to pursue their interests, the law cannot change their interests -- unless, of course, a system of Communism were adopted.
We must understand and accept that the law, or at least regulatory law, is incapable of determining the conscience for each person. If, for example, we increase the minimum wage, then the response of the Capitalist class could be to lay off their employees. Or, if we restrict how many trees the lumber companies can cut down, they might simply expand their business to other industries that exploit the environment. It's simply a possibility. The reason why any of these things might very well be true in practice is because of the interests of those the law is trying to control -- interests that cannot be eliminated by the word of any law. (Again, except the law of a true Communism -- turning every person in to an employee and an employer.) So, we see, the intentions of the regulatory laws might very well be misguided. The result of these regulations could very well be a reverse impact. I imagine, for example, that if the minimum wage were raised to $100 an hour, unemployment would skyrocket and the economy would be reduced to shambles. While the intention of this law was to help the poor man, its result would be harm towards the poor as well as an obstacle in front of the rich. Needless to say, a minimum wage of only $6 or $7 an hour is considered by many to have a positive impact on the economy and the lifestyle of the working class. However, there are those Conservatives who would argue with us that the minimum wage has done nothing but harm to the American working man, that it is the enemy of everything good and honest. To those Conservatives who criticize the labor laws directed towards protecting the Proletariat, I must say this...
Among the Conservative vote, we hear a non-stop cry that the Laissez Faire system has always been strong, effective, making proud nations, making proud people. They will tell us over and over, that the only system of economy that can work is a system where the right to private property is completely respected. These regulatory laws that try to control the economy and help the worker only hinder him. But, my dear readers, these Conservatives are lying to you, and you should never forget that if there are enemies of progress, they are allies with such creatures. Never forget that your ancestors broke their bones and shed their blood working 16 hour shifts as carriage drivers, factory workers, personal servants. Do not forget that it was among your grandfather and your great grandfather's kind that children were sent to work in mills, losing arms to sawblades and losing spirit to the whip of a floorman. As an American, you can never forget that your ancestors were once immigrants, speaking an unfamiliar tongue, practicing unfamiliar religions, alone and afraid. And never forget, that it was under these conditions that every person in poverty was turned in to a virtual slave. To be a good economist, one must also be a good historian. Those of the Conservative ilk are incapable of operating as either. They were quick to forget the sufferings of their own blood when it meant satisfying their desires at a cost to others.
Yes, there was once a time when men and women had to work upwards of 12 hours a day, in total darkness, loud machinery deafening them, and dangerous equipment threating their life and limb. We are out of those dark ages, but the Capitalist class has simply brought those crimes to foregin lands where it is permitted. Perhaps the Conservative would have us believe that it took 300 years for the human heart to actually develop to the point where Capitalists wouldn't prey on their workers? Perhaps they would truly have us believe, that all these regulatory laws, banning child labor and abetting the downtrodden, that all of these laws had absolutely no effect in stopping a dehumanizing economy? Perhaps it was simply a random growth spurt in conscience that brought it all to an end, not completely unlike waking up to a wetdream. These Conservative "economists" are liars and friends of thieves. Few of their words can be trusted.
