In the government’s roles, regulatory plays an important function to keeping the society it serves functioning properly. Free market is a wonderful concept that requires guardrails. And that’s where the government comes in.
However, public policy making is far from easy. The process involves multifaceted considerations, inputs, and deliberations. So the rules’ outcome will be balanced and fair. If and when things go awry, opportunity arises for the process to improve the rules.
Recent bank failures is a case in point. Hearing are scheduled on the Capital Hill this week to explore what went wrong and how the system can be improved, so the mistakes won’t be repeated. All good and necessary to make sure we’re fixing the right problem.
Some calls for more rules, which may be needed. But more often than not, the existing rules are adequate or may just need some tweaking. The real question becomes whether the rules are being properly enforced. If they are not, more rules certainly won’t help.
Do think the banking crisis is behind us?