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Government Regulatory Intervention in Canadian Business It is possible that Canada may be approaching the critical level where the economy is being strangled where enterprise is re-strained and where entrepreneurship is stifled But Canada could not dishevel itself that easily Canadian business will not fall because it doesnt like a few rules Canadian business will realize that Government regulations have a positive and effective role in society and should be commended and not scrutinized Public choice theory explains that the Canadian Government will always strive for pay perks and power and there may not be much Canadians can do about changing the incentive structure of the regulators themselves But might it be possible to set up and enforce by law some principles of regulation to make interference more rational more effective and less costlyFirst of all one would argue that the regulatory entity should always be at the lowest level of government appropriate to the problem This is really a democratic principle which allows each citizen to make an input on matters that concern him directly The example certainly is zoning for land use In the area the example would be garbage collectionA second principle but just as important as the first is to make sure that regulation satisfies some kind of cost-benefit criterion It is understood of course that the regulation should be as cost-effective as possible--that is of least cost to achieve a particular goal But is the goal itself worthwhile Here one has to measure the benefits that can be achieved and compare them somehow with the costsAnother way to do this is by having people pay directly Within the next few years motorists will face not only higher gasoline taxes but also greatly increased costs in monitoring car emissions and in recharging or replacing air-conditioning systems Perhaps these and similar instances of direct out-of-pocket costs will lead to a kind of consumer revolution which in turn can lead to an overhaul
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