Consumer Protection
by Dr. Mary Ruwart
The good doctor answers tough questions about consumer protection in a free society.
Death by Government Protection
by Sheldon Richman
"If the government stopped regulating—and everyone knew it—the buying public’s vigilance
would grow. People would seek out information. Entrepreneurs would respond. Insurance
companies would assume a larger role. Private consumer advocacy would expand. Lives
would be saved."
Emancipate the Consumer
by Karen De Coster
"A resistance to the State and its regulatory strangulation is necessary for liberty,
and essential for emancipating the consumer."
The Forgotten Consumer
by Eric-Charles Banfield
"Frequently both sides in an argument are wrong. When looking at free trade and
free-market issues, both opponents and proponents invariably focus only on the producer
side—how many jobs will directly be created or lost—and both sides completely ignore
the effect on the consumer and his role in economic growth."
How can a free market protect consumers against business abuses?
by Mary Ruwart
"Today's mega-businesses lobby for government regulations to drive their smaller
competitors out of business. In a libertarian society, these regulations wouldn't exist.
Consequently, a business could grow big only if it gave consumers better quality service
at a better price than its competitors."
Let the Market Protect Consumer Safety
by John Hood
"Most accidents are completely unpredictable. They depend on the mannerisms and
behavior of a consumer, the time of day, the weather, and just blind luck. This
information is not available to regulators in Washington, and cannot be reflected
in CPSC directives. But it can be reflected in a free market."
The Morals of Trade
1859
by Herbert Spencer
"When that abhorrence which society now shows to direct theft, is shown to theft of all
degrees of indirectness; then will these mercantile vices disappear. When not only the
trader who adulterates or gives short measure, but also the merchant who overtrades, the
bank-director who countenances an exaggerated report, and the railway-director who
repudiates his guarantee, come to be regarded as of the same genus as the pickpocket, and
are treated with like disdain; then will the morals of trade become what they should be."
Promise Keepers
July 1, 1998
by Peter Spencer
"In most instances, we also can rest assured that the indicators of safety or quality
will keep their promises. For example, the ongoing successes of an Underwriters
Laboratories or other private certification firm requires a reputation for integrity
and vigilance that certification isn’t misused. Similarly, if the American Automobile
Association turned people over to many unscrupulous mechanics, its reputation would
diminish its assurance value. My insurer doesn’t want to recommend shoddy body shops,
either."
Protective Technology
by Peter McWilliams
Gadgets that could provide more safety than can be provided by legislation.
Public Health vs. Bureaucratic Self-Interest: Don’t Trust the FDA to Reform Itself
May 18, 1995
by Robert Higgs
"Administrative changes by the FDA will not suffice. What the agency stops doing now, it
can resume doing later; and it will unless the law is changed. The FDA could never have
abused its powers so grossly if Congress had not given it so much discretionary
authority. Real reform requires that Congress drastically curtail the agency's
legislative authority."
Public Services: practical examples
by stormy MON
Brief descriptions of how the free market can provide services such as health and
safety inspections. Part of an online book, Imagine Freedom, which attacks
government and religion.
Quality-and-Safety Assurance: How Voluntary Social Processes Remedy Their Own Shortcomings
by Daniel B. Klein
"Consumer-protection laws and regulations are often rationalized on the grounds that
without them the public would make uninformed or foolish choices. But the risks arising
from imperfect knowledge prompt consumers and entrepreneurs to discover new ways to
assure quality and safety, thus undercutting the case for government regulation."
Regulation by Reputation on the Net
April 2001
by Aaron Steelman
"Daniel Houser and John Wooders, economists at the University of Arizona, have looked at
this issue empirically. Their findings are consistent with my anecdotal
experience: “seller reputation (but not buyer reputation) is a statistically and
economically significant determinant of auction prices.”* What we have, then, is
regulation by reputation. And the system works quite well for most eBay users."
Replacing Government Regulations with Superior Market Alternatives
by Manuel Lora
Contrasts government regulations to insurance companies and certification companies.
The Rise and Fall of the Edsel
by Anthony Young
"The Edsel serves as a textbook example of corporate presumption and disregard for
market realities. It also demonstrates that advertising and pre-delivery hype have
their limits in inducing consumers to buy a new and un-proven car. In a free market
economy, it is the car-buying public, not the manufacturer, that determines the
success or failure of an automobile."
Safety and Wealth
January 11, 1998
by Thomas Sowell
"Whether particular regulations save more lives directly than they cost indirectly by
sacrificing or inhibiting the production of wealth is an empirical question. But it is a
question that is seldom asked."
The Self-Interest of Self-Regulation
by J. Brian Phillips
"Proponents of government regulation often overlook the many ways in which the free
market itself polices producers, without the need for government involvement. Let us
make a quick survey of these ways, in the hope that it will help us better to
understand the market process, as well as shed further light on the wisdom of
government intervention."
The Sovereignty of the Consumers
by Ludwig von Mises
"The direction of all economic affairs is in the market society a task of the
entrepreneurs. Theirs is the control of production. They are at the helm and steer
the ship. A superficial observer would believe that they are supreme. But they are not.
They are bound to obey unconditionally the captain's orders. The captain is the consumer.
Neither the entrepreneurs nor the farmers nor the capitalists determine what has to be
produced. The consumers do that. If a businessman does not strictly obey the orders of
the public as they are conveyed to him by the structure of market prices, he suffers
losses, he goes bankrupt, and is thus removed from his eminent position at the helm.
Other men who did better in satisfying the demand of the consumers replace him."
What Protects Consumers and Workers?
by Walter E. Williams
"What is said here about competition is not restricted to strictly political or
economic matters. A more-preferred lady is always treated nicer if she has many
suitors; however, competition makes it possible for less-preferred ladies to
effectively compete with more-preferred ladies. They do that by offering what
economists call “compensating differences”—lower prices and greater services.
In fact, there is an old rock-and-roll song about this competitive process that
bears the title “If You Wanna Be Happy”: “If you wanna be happy for the rest of
your life, never make a pretty woman your wife. So for my personal point of view
get an ugly girl to marry you” (www.geocities.com/oldiesheaven1/happy.html)."
Who will protect us from our Protectors?
July 1997
by Peter Huber
"U.S. utilities now go abroad to buy back improvements on the technology U.S. firms
once sold. Last year the Wistar Institute in Philadelphia arranged research in Argentina
to test a bovine rabies vaccine, and Oregon State University researchers chose New Zealand
to test another bioengineered vaccine. Regulatory agencies and liability courts send a
single, persistent message to scientists, engineers, doctors, pharmaceutical firms, waste
handlers, airlines: Don't experiment, don't be venturesome, don't go out on a limb.
Play it safe.
Creative destruction—the constant replacement of old social structures and technologies
with new ones—is the key to any civilization's survival. In this sense, our enemy is
within, not without. We are stifled by our own do-gooders, our law courts, our
bureaucrats. Today the Wright brothers could not get off the ground. Could our early
railroads have passed an environmental impact or safety test? What would the unions
have done to Eli Whitney's cotton gin?"
Why the Precautionary Principle is Wrong
Part 1
December 21, 2006
Part 2
December 23, 2006
by Neil Lock
"And isn't the precautionary principle itself a source of risk? Are we sure there would
never be harmful effects from its application? One thinks of the human lives lost to
malaria through the banning of DDT. And can we be sure that it would never cause us to
miss out on benefits in the future? One thinks of drugs like aspirin, and wonders
whether, if discovered today, such drugs would be approved for use."
Time to Depoliticize Airline Security
by Anthony Gregory
"Airlines could have different standards, and customers could choose which ones to
patronize—those that allow firearms or those that disarm their passengers and crew;
those that scrutinize all patrons equally or those that are more cautious with
passengers of a statistically riskier demographic."
The Human Cost of the Anti-pesticide Movement
by Richard Tren
"Spraying DDT is a safe and effective way to kill malaria-bearing mosquitoes, but
Uganda's farmers fear that any association between their products and DDT will harm
their valued export markets."
Kosher Cops
by Jacob Sullum
"There are more than 100 kashrut supervision services worldwide, plus publications,
such as Kashrus Magazine, devoted to covering developments that might concern a
Jew who observes the dietary laws. In addition to organizations such as the Orthodox
Union, individuals often serve as kashrut supervisors, or mashgichim."
Protect food from federal 'safety'
by Sheldon Richman
"If all companies are subject to the same government safety certification, they will
not regard it as worthwhile to compete on the basis of safety."
Regulatory Poison
February 1, 1998
by Thomas J. DiLorenzo and James T. Bennett
"The FDA literally killed American citizens by denying them the right to decide for
themselves whether they wanted irradiated food. FDA regulation was infinitely more
hazardous to health than food irradiation could ever conceivably be."
Should Government Regulate What We Eat?
October 24, 2006
by Wendy McElroy
"Well, viewed from one perspective, words are only ‘puffs of air,’ but that doesn’t
diminish the importance of free speech. The idea of government micro-managing personal
choice and freedom down to the level of a french fry is a very big deal."
The Slippery Slope
by Walter Williams
"Now the zealots have won the war on smoking, they are turning their attention to
the overweight among us."
We Can Do Better than Government Inspection of Meat
by E. C. Pasour, Jr.
"No one has a stronger interest in protecting consumers from tainted meat than
the businesses in the industry. Ultimately, safety is best assured when rooted
in the self-interest of business firms and consumers."
The Weight of the Nation: What Should Be Done About Obesity?
by Nadeem Esmail
"A number of groups and government officials have suggested ways of dealing with the
obesity "epidemic" including the "Twinkie Tax," public education programs, and mandatory
physical education in schools. Here is a better solution."
A World Without the FDA
by Russell Roberts
"Would a world without an FDA and prescriptions be a better world? The answer depends
on how many lives would be lost from mistakes and how many lives would be saved by
the wider and earlier availability of drugs. It would also depend on the value you
place on putting responsibility in our own hands rather than having the government
take responsibility for us."
Theories of Highway Safety
by Walter Block
Free-Market Justice Is in the Cards
by J.H. Huebert
"One of the most impressive examples of free-market justice involves something
that might be in your pocket right now: your credit card."
Does Physician Licensing Serve a Useful Purpose?
July 10, 2000
by Shirley V. Svorny
"Improvements in the incentives for others to monitor physicians due to shifts in
liability, the growth in group practice, and peer review, and the increased ease with
which this monitoring can be performed make state licensing efforts redundant to
market processes."
Harming Our Health
by Mary J. Ruwart
"Licensing of health care services gives us the illusion that we are protected against
selfish others who would defraud us. Instead, our aggression boomerangs back to us,
costing us our wealth, our health, and our very lives."
Separate the Professions and the State
by Lewis M. Andrews
"What is certain is that the nature of what it means to be a professional must
change radically in the years to come if the American economy is to sustain
its historic rate of growth."
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This page was last updated on August 28, 2007.