LAW 534 Lecture 1: LAW 534 chap 1

• School: Ryerson University
• Department: Law and Business
• Course: LAW 534
• Professor: Lori Anne Heckbert

Document Summary

Chapter 1 (cid:894)(cid:862) egulati(cid:374)g a(cid:374)d de(cid:396)egulati(cid:374)g isk(cid:863)(cid:895) dealt (cid:449)ith the histo(cid:396)(cid:455) of (cid:396)egulatio(cid:374)s a(cid:374)d thei(cid:396) relation to risk management. Free market- believes less regulation is better, because markets adjust itself. Regulation believes that society should be govern by regulations. Historical and philosophical journey: hobbes, (cid:862)(cid:272)o(cid:374)t(cid:396)a(cid:272)t theo(cid:396)(cid:455)(cid:863) - the power of government to pass rules comes from contracts theory (ppls willingness) Industrial revolution (protecting the vulnerable: adam smith & laissez-faire theory (unregulated capitalism, let it be, leave it alone and markets will take care of itself and adjust. Deregulating risk: the trend towards deregulation (removal of regulation- what company can do) and privatization (divesting of public ownership) in the reagan/ thatcher era. Why this shift: privatization- business can do it more efficiently than the government, deregulation- more effective because don"t have to fill in as much, glass steagall act of 1933 forms