1. Common Sense Economics Section 2 Element 3 Limits on Government Regulation 1

2. 2 Economic progress comes through limiting government regulation that reduces trade and retards economic progress

3. Regulation, Competition, and Economic Growth Competition promotes the efficient use of resources and provides a continuous stimulus to improve, innovate, operate efficiently, keep costs down, and cater to the preferences of consumers. A heavily regulated business climate tends to reduce competition and lead to a lack of economic progress… 3

4. 4 It’s Hard to Know What Will Work… Ken Olson, chairman/founder of Digital Equipment Corp., 1977: "There is no reason anyone would want a computer in their home." Fred Smith’s (FedEx) Yale University Senior Project Grade Remark: "The concept is interesting and well-formed, but in order to earn better than a 'C,' the idea must be feasible."

5. 5 It’s Hard to Know What Will Work… Would you have invested?

6. 6 It’s Hard to Know What Will Work… Who would have thought….

7. Regulation, Competition, and Economic Growth For Example: Lets look at my home state of West Virginia! 7

8. Regulation, Competition, and Economic Growth For Example: Lets look at my home state of West Virginia! 8

9. The Regulation Dice Game! Let’s play a game to see how different regulatory environments affect economic growth! 9

10. World Bank Data CountryEase of Doing Business Rank # of days it takes to start a business # of procedures it takes to start a business Income per capita (2010 data) Singapore133$41,120 Hong Kong233$31,757 United States466$47,153 Average2.3344$40,010 Rep. of Congo18116010$2,970 Venezuela17714117$13,590 Haiti17410512$671 Average177.3313513$5,744 10