One naive, yet strong point of conviction I have is that free markets are better for society. Around that foundation, I also (in 2018) subscribe to the idea that stringent regulations has built frictions that unfairly and inequitably allocate society’s resources.
In other words, heavily regulated industries have formed a moat around industries and, for years now, rewarded the undeserving.
I think it would be ignorant/foolish of me to say that regulation is entirely bad. In fact, I know and realize that, at the minimum, some regulation and government is needed in society. Industries are complex and fragile and often need financial stability and support backed by government bodies.
But my point of conflict is that I recognize there are a number of regulation-supported moats that have created inefficient frictions in society across disproportionately spotlighted industries such as Healthcare, Finance, Pharma, etc.
This waterfall effect leaks everywhere.
Students are incentivized to join moat-industries.
They work on problems that are unfairly being rewarded – thus representing an inefficiency in labor distribution.
Moats are good – they mean that companies achieve network effects by providing a valuable service.
Moats are bad, though, when they are strung up by government regulation and inefficiency.
Things should not exist simply because “they have always existed in a certain way” or because “the laws allow them to be that way.”
I think, in the next 10 years, obviously there are a number of today’s frictions that will go away. And, if technology does what it has done over the past few decades, we will return closer to a free market in which the best ideas always win and the people are treated most fairly.