Why is the government regulation necessary in a capitalist system according to those who believed in laissez-faire?

Answer 1

Regulation is necessary in a capitalist system because crooks exist. Some capitalists, such as Bernie Madoff, will create Ponzi schemes. Some such as Joseph P. Kennedy will manipulate the Stock Market. Some such as John D. Rockefeller will use their abilities in the oil business to undercut competition and drive them out of business.

Allowing builders to do away with the safe building codes allowed Hurricane Andrew in South Florida to destroy houses and buildings built after 1981 while those built before that date survived without damage.

Allowing builders to put locks of fire doors allowed the deaths of hundreds in the New York shirtwaist factory fire.

The list is endless.

Think of what red lights would mean without cops. Every city would look like an American Western. I know what gun I would carry. Do you?

Answer 2

Regulation is necessary in a capitalist system because crooks exist. Some capitalists, such as Bernie Madoff, will create Ponzi schemes. Some such as Joseph P. Kennedy will manipulate the Stock Market. Some such as John D. Rockefeller will use their abilities in the oil business to undercut competition and drive them out of business.

Allowing builders to do away with the safe building codes allowed Hurricane Andrew in South Florida to destroy houses and buildings built after 1981 while those built before that date survived without damage.

Allowing builders to put locks of fire doors allowed the deaths of hundreds in the New York shirtwaist factory fire.

The list is endless.

Think of what red lights would mean without cops. Every city would look like an American Western. I know what gun I would carry. Do you?