What the Banking Crisis tells us about Unregulated Technology

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Economics / Politics

The table below parallels the discredited arguments that supported the hypertrophy of banking in the run up to the banking crisis (left hand side) and fashionable ideas from the US in favour of technological laissez faire (right hand side).

Banking

Technology

market participants should be left unregulated because
markets are efficient  information wants to be free
the prices generated by markets are perfect future technological development is determined/inevitable
regulators can’t set better prices than the market technology will always circumvent regulations or restrictions like DRM
market participants as a totality are smarter than any individual or sub-group because
the market prices assets perfectly  the hive-mind knows best
if we were to introduce regulations in our country
we would drive one of most successful industries overseas and our competitors will offer the same products anyway we would drive the industry of the future overseas and someone else would build it anyway
we must ignore the macro level, real world, long term effects of deregulation because
innovation in financial products is good for the economy  we can’t stand in the way of progress
this isn’t a matter for political control, these developments are inevitable, there is no alternative
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