Be Our Guest: “How to make Brexit Really Worthwhile – Example: Financial Regulation”

Be Our Guest is an open invitation to NOL‘s readers to participate with us. Pretty much anything is on the table. The latest article comes from the Freeconomist, who is following up on his earlier piece about making Brexit worthwhile via information asymmetries. His new piece is on financial regulation through the prism of Brexit. Check out this excerpt:

I do not want to write a lengthy discussion on the question of which alternative is the least costly in dealing with the incentive problems arising from the implicit subsidy by the taxpayer. There are good reasons to believe an incremental, decentralized and evolutionary system of market-based regulation to be superior to centrally designed government regulation. (4)

But even if this is the case, private regulation arising as a response to the incentive problems resulting from explicit and/or implicit government guarantees is still costly. Indeed, the evolved system of private regulation in the UK banking industry was giving the appearance of a restrictive cartel. If my analysis is correct, this “cartel” served a useful social function, namely to deal with the incentive problems created by the implicit government guarantee. Nevertheless, it also involved costs.

At the root of the problem are the taxpayer guarantees.

Please, read the rest. It’s another excellent piece of work.

And don’t be afraid to submit your thoughts to us.

Be Our Guest: “How to make Brexit Really Worthwhile – Example: Regulation dealing with Information Asymmetries”

Here is the latest installment of NOL‘s new “Be Our Guest” series, this one by the pseudonymous Freeconomist. An excerpt:

Third-party certification provides assurance to consumers that a product or a supplier of professional services meets certain quality standards.

Private suppliers of third-party certification include organisations such as Consumer Reports, the American Automobile Association (AAA), which rates motels, or A.M. Best, rating insurance companies. Examples of third-party certification provided by the government are product safety regulation, food standards regulation or occupational licensure.

Private suppliers of third-party certification can only exist because the product they offer is valued enough by market participants to justify the cost of providing it. And their profits are determined by their credibility.

The same cannot be said for third-party certification provided by the government.

Please, read the rest and do keep submitting your thoughts to us.

Introducing “Be Our Guest,” a new component of NOL

Check out NOL‘s newest feature, a place where you can have your thoughts and arguments published in a house of decency and legitimacy. The first guest essay comes from Ben Sharvy, a teacher in Portland, on, among other things, vaccines and the lack thereof:

What’s the damage done? Cancer patients who forego conventional treatment and exclusively choose alternative medicine are 2.5 times more likely to die. Women with breast cancer fare the worst — with a 5.7 times higher death rate among those who choose only alternative therapies. Multiple studies agree, including a 2017 report from the National Cancer Institute: Alternative medicine kills.

Read the rest, and by all means, submit your own thoughts to us. Tell your friends about this project, too.

Why this feature? Mostly because of the rather high volume of submissions I have been getting lately. Many of these pieces don’t really fit in with NOL‘s overall vibe, but that doesn’t mean they’re not worth reading or putting out into the world. So, be our guest.