This image makes excellent and foundational points about why increased regulations rarely solve problems. Why? Because when you peel back the layers, the large corporations turn out to be the authors and the beneficiaries of the regulations.
There are many ways to do that. Even in business, requests for goods and services are often subtly tailored to steer purchases towards certain vendors. The same thing happens in government. The IRS exceptions or language for certain laws may not mention a corporation by name, but it just so “happens” that the preferred corporation is the only one meeting the criteria.
The winners are the large corporations and the politicians that they essentially pay off during the process. The losers are the smaller businesses, the consumers and the taxpayers (of course those three overlap in places).
And once regulations are in place then two things are nearly certain: They will never disappear and they will continue to grow.
This also applies to the bailout / “too big to fail” nonsense. What do you think would happen if you could go to Vegas knowing that you would get to keep any winnings but that taxpayers would pay for any losses?
When in doubt, always go with less government and less regulations.