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609 pages, Kindle Edition
Published July 1, 2018
In a civilization where a belief in a Big God is effectively universal, there is a major advantage in the kind of things you can do collectively. In today's America, you can't be trusted to ride on an airliner with a nail file. How could you be trusted driving your own 1000-horsepower flying car? ... The green religion, on the other hand, instead of enhancing people's innate conscience, tends to degrade it, in a phenomenon called "licensing." People who virtue-signal by buying organic products are more likely to cheat and steal[6]
Once I got near SFO, I had to refuel my rental car, return it to store, and drag my luggage onto the “airtrain.” This is a piece of Disneyfied transport engineering that appears to combine all the disadvantages of buses, trains, and roller coasters in one vehicle.
the long-run compound-interest effect on the economy as a whole is startling: without it our economy today would be twice the size it actually is. This is the closest we can come to measuring the effect of taking more than a million of the country’s most talented and motivated people and put them to work making arguments and filing briefs, against each other so their efforts mostly cancel out, instead of inventing, developing, and manufacturing things which could have made life better.
One of the main ill effects of regulation, at least in the United States, is a significant breakdown of the rule of law. Regulators are not elected and the regulations they promulgate are not subject to any significant check or balance. Last year Congress passed 138 laws; agencies published 2,926 new regulations. Federal courts handled about 95,000 cases; regulatory administrative courts a million. [...] Because of the all-encompassing breadth and specificity of the regulations and the clueless literality with which they are enforced, it is essentially impossible to run a productive business without breaking some of them.Later (I think in an Appendix), Hall shows a concrete example that kneecaps the flying car: detailed, unbendable regulations around side mirror requirements on passenger cars inhibit flying car development: side mirrors are super disruptive to aerodynamics. But regulators won't bend on accepting other options, like a camera-based system.
One of the more ironic regulatory pathologies that has shaped the world of general aviation is that most of the planes we fly are either 40 years old or homemade—and that we were forced into that position in the name of safety.
Nuclear power is probably the clearest case where regulation clobbered the learning curve. Innovation is strongly suppressed when you’re betting a few billion dollars on your ability to get a license to operate the plant. Besides the obvious cost increases due to direct imposition of rules, there was a major side effect of forcing the size of plants up (fewer licenses); fewer plants were built and fewer ideas tried. That also meant a greater cost for transmission (about half the total, according to my itemized bill), since plants are further from the average customer.
The Navy has over 6000 reactor-years of accident-free operation. It has built 526 reactor cores (for comparison there are 99 civilian power reactors in the US), with 86 nuclear-powered vessels in current use.Wow!
If you are a technologist working on some new, clean, abundant form of energy, I wish you all the luck in the world. But you must not labor under the illusion that should you succeed, your efforts will be justly rewarded by the gratitude of the people you have lifted from poverty and enabled to have a bright and growing future. You will be attacked, your work will be lied about by activists, demonized by ignorant journalists, and strangled by regulation. But only if it works.