Reflections on the Pros and Cons of State Regulation

Abstract

Societies need regulation of human behavior & human social interaction if they want to maintain a system of ordered relationships &, thus, to survive & prosper. Inevitably, it raises the question of who regulates what, when, how, & why on the basis of what title, at what costs, & with what consequences. In modern societies, which are complex systems, an important role is played by state regulation, which may be more or less permissive or restrictive. In any case, it is a source of tensions & conflicts in society. Yet, permissive state regulation is preferable to restrictive. The reason is that by encouraging spontaneity, ie, individual freedom & self regulation, albeit in a stable framework of general ex ante rules, it positively contributes to prosperity & development & reduces noncompliance with government made formal rules, eg, second economy activity.