The Seen, the Unseen, and the Unrealized: How Regulations Affect Our Everyday Lives

by Per Bylund

This book illuminates the real effects of regulations on people's everyday lives. It traces the effects of regulations on an economy by working through the ripple effects of changes. In so doing, the book provides a fundamental understanding for the economy as an organism rather than a machine, and enlightens the reader by offering a model for understanding the economy and market. Regulations, which are restrictions placed on the working of the economy, have consequences, both intended and unintended, direct and indirect. While the direct effects are well understood, the indirect effects are often overlooked because they don't fit with the machine understanding of an economy. More to the point, this book emphasizes the real effects of regulation and market change on individual actors, thereby stressing how the economy works to provide an individual with the options that exist in choice situations. We draft a new definition of prosperity and well-being which focuses on the individual's access to valuable alternatives. From this point of view, the real implications of regulation are traced step by step, following the logic of exchange and the effects on individual actors rather than the economy as a whole.

Genres: Economics

194 pages, Kindle Edition

Published August 3, 2016

Reviews

[Josiah Edwards · Rating 4 out of 5]

I was skeptical when I started reading that Per Bylund was going to analyze such a real and pertinent issue as regulation, using economic theory, with only one real life example in the book. But Bylund writes to help you understand—both basic economics and the Austrian perspective on economic analysis—which I think was the best possible way of tackling a topic so broad. Brilliant. The only thing I felt was lacking was a detailed deep dive into a real life example with specific data, but perhaps that would just be feeding an itch that shouldn't be scratched (since statistics, which he so perfectly explains in the book, can only go so far in their usefulness.)

He's also got a great sense of humor (but that's face-to-face, not necessarily in the book.)
Cheers.

[Walter Ullon · Rating 2 out of 5]

The Seen, Unseen, and the Unrealized provides an approachable, albeit contrived examination of the intricate ways in which government regulations influence market dynamics and everyday economic activities. The book labors to distinguish between the unregulated market and the regulated economy, shedding light on how various forms of regulation — both incentives ("carrots": subsidies) and disincentives ("sticks": taxation, prohibition) — steer production and affect consumer satisfaction. It delves into the foundational economic principles of price determination, the "invisible hand" mechanism of decentralized planning/price discovery, and the pivotal role of entrepreneurs in navigating and adapting to regulatory landscapes. The discussions on opportunity costs and the inherent limitations of pure market systems provide readers with a realistic perspective on the challenges of achieving perfect market alignment and the continual need for entrepreneurial innovation.

However, the book also presents some challenges. Despite being a rather small book at 172 pages, it reads a bit like the dense political and economic treatises of yesteryear (this book was published in 2016). The main points and supporting arguments are oftentimes substantially drawn out, with long paragraphs that repeat the same sentences in different guise.

Another issue involves the examples that are used to flesh out the main arguments - completely fabricated, simple thought experiments that comprise of economies of six or so actors that must compete/cooperate/coordinate economic decisions among them. While this approach can work, I'd much rather have seen real-world examples of the externalities at play. This results in contrived conclusions that give off a whiff of laziness - in the absence real data, I too can come up with thought experiments that support any point I desire to make. For a masterclass in how to present real-world examples on the issue of regulations (specifically price controls) look no further than Forty Centuries of Wage and Price Controls: How Not to Fight Inflation

Additionally, the focus on the negative impacts of regulation might benefit from a more balanced view by highlighting instances where regulation has successfully addressed market failures and promoted positive economic outcomes. As such, it is important to recognize instances where subsidies have produced highly desirable outcomes. A prime example is the development of Silicon Valley in the United States. Government subsidies and investments in research and development during the mid-20th century played a crucial role in fostering technological innovation and entrepreneurship. Programs such as the Defense Advanced Research Projects Agency (DARPA) provided funding for early computer and internet technologies, which laid the foundation for the thriving tech ecosystem we see today.

The biggest issue with the book though, is that it fails to set the right expectations. Despite the "How Regulations Affect Our Everyday Lives" promise in the title, it takes the author roughly 60-70% of the book (chapter 7, in a 10-chapter book) to breach the issue of the negative externalities resulting from regulations. The first half of the book is spent explaining to the reader what a market is, the benefits of money, how prices work, how production arises, etc. In other words, things I would have expected my readers to be familiar with already. This is of course not bad, but I was hoping for the author to start discussing the issue of government intervention right from the start. It's like someone telling you they will train you for a 5k, but first they put you through a marathon - you're exhausted before you begin.

Overall, I think the book is not bad if you are looking for a self-contained economic narrative that takes you from first principles and bridges into the issue of government intervention through taxation, prohibition, and subsidies. However, its heavy focus on theoretical concepts and contrived examples may limit its appeal to those seeking real-world examples.

2.5 stars.

[David Jakobsen · Rating 4 out of 5]

A great analysis of what makes the entrepreneur special, what he is good for, and what impact government regulations have. What makes the entrepreneur special is his ability to have foresight, not infallible, but a pretty good idea of what must be done in the present to buy and set up a production apparatus to meet an anticipated future. He takes the broken window myth to a new level with his emphasis on the unrealized.

[Juan David Vargas Quiceno · Rating 4 out of 5]

Una defensa algo optimista del sistema de libre mercado, quizás deja por fuera el factor humano que termina siendo tan relevante como cualquier otro. Sin embargo, logra explicar de manera muy clara porque con el pasar de los años y la evolución de la humanidad, una de las expresiones más claras de libertad que han existido ha sido el desarrollo de este modelo económico. Cuando el estado mete las manos más de lo que debe, o incluso lo que debe, altera de manera significativa el desarrollo de personas y negocios.