In his State of the Union Address, President Barack Obama promoted his vision of "middle-class economics."As part of his program, he pledged to lower taxes for working families, "putting thousands of dollars back into their pockets each year."
Alas, what his budget proposal pledged to giveth, his energy policy taketh away. The industry regulations pushed by Obama's Environmental Protection Agency, conflict with his stated budget intentions by foisting higher household energy costs that fall disproportionately on the poorest among us.
In a free market, entrepreneurs serve society tremendously by coordinating the entire market division of labor, directing scarce resources toward their most highly valued use as determined by members of society.
The price system ensures that those who produce the most demanded goods in the most efficient way will reap profits, while those who fail to do so will reap losses.
Business regulations serve to hamper this beneficent market process. Regardless of any other purposes they serve, regulations constrain entrepreneurs from arranging production processes in their best, most efficient pattern.
They necessarily increase costs of
production and decrease the quantity of products people have available
to satisfy their ends. In short, business regulation results in relative
impoverishment.
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