Utahns don’t like to hear that their state isn’t always pro-markets. But right-thinking on social issues doesn’t always translate into right-thinking on economic ones.
This is a good example of regulatory capture. This is when regulators who are supposed to protect buyers take the sellers side, often because the regulators are chosen from amongst sellers (sometimes for their “expertise”.
… The state’s Insurance Department recently sided with the traditional insurance brokers against Zenefits. Utah’s insurance commissioner Todd E. Kiser (himself a former insurance broker … cited the need to protect “fair competition,” …
In other words, it’s classic government-enforced protectionism that protects existing, incumbent high-cost industries from the competition of efficient, low-cost startup rivals.
Wait … I just taught this a few weeks ago … I remember perfect competition, and monopolistic competition … but … no … nothing about “fair competition”.
Mr. Kiser needs to come to my class (or any other decent economists class): when competition is fair it is a result of market forces, not an implication of government regulation, or even a reasonably likely outcome.