There is a long history of regulation and deregulation where big scandals provide the catalyst for new rules, and then the realization that the rules are possibly excessive has caused them to be rolled back.
In finance the 1933 Glass-Steagall provisions came in the wake of the 1929 Crash. The 2002 Sarbanes-Oxley Act was a reaction to the Enron and WorldCom scandals. Dodd-Frank was enacted in 2010 after the 2008 financial crisis.
Good regulation can bring all sorts of benefits, but excessive regulation, does little to serve the public interest, and creates financial costs and frustration for businesses and the public.
Elon Musk has vowed to dismantle thousands of federal regulations as the co-head of the Department of Government Efficiency, or DOGE, saying the nation’s financial security depends on it. Is he right, and if so, what rules need to go first?
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Additional Reading:
https://regulatorystudies.columbian.gwu.edu/brief-history-regulation-and-deregulation
An Evaluation of Consumer Protection Legislation: The 1962 Drug Amendments | Journal of Political Economy: Vol 81, No 5
https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear#conclusion
https://worksinprogress.co/issue/how-madrid-built-its-metro-cheaply/
Milton Friedman Video: https://www.youtube.com/watch?v=dZL25NSLhEA
A history of regulation and deregulation: https://regulatorystudies.columbian.gwu.edu/brief-history-regulation-and-deregulation
Weird Laws Around the World: https://www.farandwide.com/s/weird-laws-world-4961c1ede8d749bf
