WHY WE HAVE REGULATIONS

Regulation is abhorred by Big Business since it adds to their costs of operation, slows production, entails government supervision and just interferes with them doing things their way.  The Exxon Valdez oil tanker ran aground and leaked massage amounts of oil into prime fisheries and estuaries in Alaska, in 1989.  And, BP and Transocean were responsible for the Deepwater Horizon Oil Spill that dumped millions of barrels of crude oil into the Gulf of Mexico Ecosystem in 2010.

All three companies were fined and ordered to clean-up their respective messes.  After spending Billions of Dollars, each declared that their jobs were done and went back to work, leaving the aftermath to the government and taxpayers  Like the various Banks that caused the Great Recession, but not before earning countless Billions, no one from from Big Oil went to jail.

Recently, GM was cited for a faulty engine switch, which caused Chevy Cobalts to lose all power, breaks and power steering.  GM acknowledges causing more than twelve deaths and 31 crashes; however, studies suggest that the problem caused more than 300 deaths.  According to Professor Jonathan Turley, of the George Washington University Law School, many analysts believe that GM is merely following the Pinto formula of Cost-Benefit Analysis, linked as follows, http://www.northjersey.com/opinion/opinion-cost-benefit-analyses-and-the-pinto-factor-1.1005284.

Championed by Ford Vice President Lee Iacocca, the Pinto was Ford’s attempt to bring a small car to market, costing less than $2,000.  It eliminated certain safety design features, which it appears to have identified–in order to stay under budget.  The additional expense, in both cases, would have been rather inexpensive to correct; however, over the total production run, the additional profits to be made were believed be more beneficial to the auto companies.

It is generally assumed that in each of these industries (Oil, Banking and Automotive), as well as others, Big Business prefers to by-pass Safety, Environmental Concerns and Fairness, in the belief that the corporations will merely make a settlement.  The Cost-Benefit Analysis suggests that the Cost of any Settlement will be less than the additional Revenue to be generated.  Corporate Revenue and, thus, Executive Bonuses would be preserved. And guess who pays for the Settlement? THE SHAREHOLDERS!

Senator Elizabeth Warren (D-MA), during her very first Senate Finance Committee Hearing asked every single one of the top Bank Regulators (FED, FDIC, OCC, SEC, etc.) how many banks they had sued?  And, how many bankers had gone to Jail?  In both cases, the answer was: None.  In other words:  Too Big to Fail,  Too Big to Jail!

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