Government Regulation: The Most Dangerous MonopolyLearnLibertyJan. 29, 2014 |
Mike Johnson Pushes Debunked Lie That Israeli Babies Were 'Cooked in Ovens' On October 7
'Sniper Seen on Roof Overlooking Pro-Palestine Protest' at Indiana University
'It Has to Be Stopped': Netanyahu Demands Pro-Palestine Protests at U.S. Colleges Be Shut Down
'These Protesters Belong in Jail': Gov. Abbott Cheers Arrest of Pro-Palestine Protesters at UT Austin
Claim Jewish Student Was 'Stabbed In The Eye' by Pro-Palestine Protester Draws Mockery After Video Released
Everyone wants the items they buy to be safe to use or consume. Prof. Howard Baetjer of Towson University explains that when products undergo third-party certification processes to determine their safety, market forces are able to optimize the amount of testing conducted and consumers can use the information provided by certification firms to make their own decisions. It is difficult to say how much testing is enough: another test can always be run on a product, but at some point the benefit of the extra testing outweighs the costs. In a free-market system, competition among certification firms allows the market to work as it should and prevents both under- and over-testing of products. Conversely, when the government holds the monopoly on safety standards, products are likely to be over-tested, delaying their entry into the market and making them more expensive. Sometimes the costs of such delays cannot be quantified; lives can be lost while life-saving medicines are held up in safety-testing processes. Check out Prof. Baetjer's book that inspired this video: http://www.freeourmarkets.com/book/ Animated by Tomasz Kaye: http://www.patreon.com/tomaszkaye |