common sense economics section 2 element 3 limits on government regulation 1
TRANSCRIPT
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Common Sense EconomicsSection 2 Element 3
Limits on Government Regulation
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Limits on Government Regulation
Economic progress comes through limiting government regulation that reduces trade and retards economic progress
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Regulation, Competition, and Economic Growth
Competition promotes the efficient use of resources and provides a continuous stimulus to improve, innovate, operate efficiently, keep costs down, and cater to the preferences of consumers.
A heavily regulated business climate tends to reduce competition and lead to a lack of economic progress…
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It’s Hard to Know What Will Work…
Ken Olson, chairman/founder of Digital Equipment Corp., 1977: "There is no reason anyone would want a computer in their home."
Fred Smith’s (FedEx) Yale University Senior Project Grade Remark: "The concept is interesting and well-formed, but in order to earn better than a 'C,' the idea must be feasible."
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It’s Hard to Know What Will Work…
Would you have invested?
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It’s Hard to Know What Will Work…
Who would have thought….
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Regulation, Competition, and Economic Growth
For Example: Lets look at my home state of West Virginia!
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Regulation, Competition, and Economic Growth
For Example: Lets look at my home state of West Virginia!
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The Regulation Dice Game!
Let’s play a game to see how different regulatory environments affect economic growth!
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World Bank DataCountry Ease of Doing
Business Rank# of days it takes to start a business
# of procedures it takes to start a business
Income per capita (2010 data)
Singapore 1 3 3 $41,120
Hong Kong 2 3 3 $31,757
United States 4 6 6 $47,153
Average 2.33 4 4 $40,010
Rep. of Congo 181 160 10 $2,970
Venezuela 177 141 17 $13,590
Haiti 174 105 12 $671
Average 177.33 135 13 $5,744