Friday, September 07, 2007
Menzie Chinn argues this week that the Bush administration's "dismantling" of the regulatory agencies has left us susceptible to more protectionist impulses. That's not a bad point, but regulation is not likely, in my view to make our toys any safer. Chinn's argument implies that the American public cannot understand how the market has incentives to protect them that are stonger than the government's incentives; I say the public is smarter than that. And it's nice that Mrs. S agrees.