graeber increase b law

The Iron Law of Liberalism states that any market reform, any government initiative intended to reduce red tape and promote market forces will have the ultimate effect of increasing the total number of regulations, the total amount of paperwork, and the total number of bureaucrats the government employs.

adding law/page while reading this.. tweeted by David..

nice examples of the Iron Law of Liberalism (market reforms increase bureaucracy) in action: https://t.co/g5XPRUey8E

Original Tweet: https://twitter.com/davidgraeber/status/666238468704571392

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[note: adding self-convo with this article here.. just because seems fitting.. article isn’t by david.. perhaps should’ve added to b page]

http://akadjian.com/2015/11/why-regulations-increase-when-you-privatize-government/

In his book The Utopia of Rules, David Graeber refers to this principle as the Iron Law of Liberalism:

The Iron Law of Liberalism states that any market reform, any government initiative intended to reduce red tape and promote market forces will have the ultimate effect of increasing the total number of regulations, the total amount of paperwork, and the total number of bureaucrats the government employs.

[..]

With health care markets, some of these transaction costs occur as a conflict between the conflicting incentives of profit and delivering quality health care. In other words, regulations need to exist to make sure health care companies don’t abuse their power in the name of profit. Other related costs include bargaining with the health care companies and policing and enforcing the solution.

on.. reg needs to exist..
in today’s not us ness world.. yes..
we don’t know yet… if they need to exist.. have yet to see us ness

In a non-profit or government-run situation, this conflict of interest wouldn’t exist. It would be much easier to trust that insurers would work towards the public good.

?

Private companies see their transaction costs go down when they can establish trust with customers. When both sides trust each other, the need for contracts, bargaining, policing and enforcement goes down. Management overhead decreases.

or when we make companies and customers irrelevant. .. no?

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laws\ish

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