Government Codes vs. Innovation - Aaron Everitt - Mises Daily

Government Codes vs. Innovation - Aaron Everitt - Mises Daily: "Think of the recent mining accident in West Virginia, the oil rig explosion in the Gulf of Mexico, or the so-called fruit-of-kaboom bomber. The commonality in all cases is that the safety of employees and consumers was in the hands of a preestablished government agency that was supposedly ensuring safety.

When a government agency fails, does it face the threat of bankruptcy or sacrifice as a result of its failure — as would any private agency in charge of such weighty matters? Of course they don't. Instead, they are generally awarded more money and a larger scope of powers to make sure it doesn't happen again."

"Another unintended consequence of state codification of safety are the resulting disincentives to innovate. Instead of putting efforts toward the risky endeavor of product innovation, a business is forced to put its effort towards finding a way to meet or overcome the code."

"Corporations, understanding the power of a universal housing code and its governing bodies, have made an effort to get their products and brand included in the code. (Tyvek house wrap, Simpson Strong Ties, and DOW blue board are just a few of the major companies who have their product mentioned by name in the code.) Major changes occur in this code every two-to-three years that require homebuilders to revise their plans, layouts, and product selections in order to meet the code."