Law For Food: The law affects what you eat. What you buy to eat affects the law.


When an Industry Calls for Regulations
12 September 2007, 10:55 pm
Filed under: Economics of Eating, Inspections, Regulation

Slate has an interesting article about the toy industry calling for mandatory government safety testing of toys, and the self-interested reasons a company might call for increased regulation of its industry. Regulations compliance adds to production costs. In any industry, these costs are likely to be higher for small producers than they are for large producers because of economies of scale, among other reasons.

In addition, in the case of toys, there already exist a number of laws and regulations governing the sale of toys which contain, e.g., lead paint. The problem was not that these laws were in some sense absent. The problem was that these laws were not complied with.

Something to think about when calling for regulation, anyway.

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