Tuesday, November 28, 2006

Okay, enough about the Netherlands.

It's tough to decide whether regulatory burdens hinder business profitability; surely, some are unnecessary and costly. But Eliot Spitzer doesn't think so with regard to the recent reforms following Enron, and I too am inclined to think that more accountability alone is not the reason for business' lack of success. He points to businesses that he helped reform as New York Attorney General, which are now enjoying success. Whether that is directly related to the reforms is not clear, but it does disprove the idea that the reforms he is after will destroy businesses. See the FT's article about governor-elect Spitzer's recent statements about accountability regulations here.

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