Economists argue that government regulation is often beneficial to businesses that are regulated. Economists argue this because government regulation:
often prevents other people from entering the regulated industry. makes markets contestable. reduces barriers to entry. allows the law of comparative advantage to benefit firms.
Economists tend to argue that we should judge government programs by:
their stated intentions. the real intentions of the people who introduced the bill. the real intentions of the people who administer the programs. the actual effects of the programs.
