Is government regulation the answer?

Many of the most highly profitable and corrupt industries, where fat cat vested interests are protected from outside competition are the ones that are most highly government regulated.

A classic example is the medical industry.

The medical industry is an economic/consumer disaster because of market protection moves made by governments at the behest of corporations and institutions that benefit from having a protected market.

Rather than so much regulation I believe branding and free markets are the answers to ensuring good consumer outcomes.

The value of a brand lies in the public's perception of it and a negative story about a product or service can have a strong negative impact on that brand.  As a consequence it behooves quality manufacturers, who wish to build brand trust, to be very careful with the products it releases under its label.

Branding is good for consumers and producers because consumers build trust in a brand, meaning they can buy with confidence, while producers benefit from customer brand loyalty which provides the ability to charge more for their products and maintain high sales numbers.

In the modern age, with the internet and stories quickly going viral, a company cannot afford to mess up publicly any more. If it does so it's value will quickly diminish as it's brand is tarnished.


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