Comment by potato3732842

> In <pick random developing nation that isn't too poor> a man who wants to construct a septic for a house pays a man with backhoe who understands the nuances to make it happen. Concrete and diesel are bought, etc, etc, etc. Let's say $5k USD added to GDP.

The piece you're missing is that the man has to pick between 10 indistinguishable men with backhoes, of which some unknown percentage are charlatans who will dig a hole, put some pipes in it, then disappear with the money. The original man will now have a puddle of human waste next to his house, no septic system, and be $20k poorer ($10k+ in cleanup, then $10k to someone to build an actual system).

Regulation ensures that the charlatans can't operate and that everyone who pays $10k for a septic system actually gets one that works for decades. This also protects the original man's neighbors who also suffer when his property develops a cesspool. Regulation also protects against well-meaning but incompetent operators, who are also common when regulation is weak or non-existent.

There is still $5K more _economic_ value created, in that +$5K went to people who might otherwise be jobless. They'll in turn spend that money at businesses in the private sector, reaching more people, and so on. If the man with the septic tank runs a coffee shop, he will see extra value from more coffee sales.

The extra taxes paid by all will (theoretically) improve the schools, roads, military, and services. The regulations will (theoretically) decrease the risk of poisoning ground water and injuring someone, which adds even more value to the local community.

The distinction is just that the septic tank is twice as expensive in the developed country. But that money can lift people out of poverty. The exception is when the company owner is hoarding the majority of the money tax-free instead of paying it to people who will spend it.

This is a wild take imo. Yes, I am sure there there are definite cases of overreach and I generally sit squarely in the libertarian camp but most permits, studies, etc are there for a reason. Maybe you have lived in a developing nation but I have and I can say you are at much higher risk of death because of the lack of oversight. The number of commercial building fires, risky electric installations, lack of common code is highly dangerous.

I haven't been in a car accident for 15 years, not even fender benders, that doesn't mean I shouldn't take insurance.

As someone from a random developing nation car accidents deliver crippling debt and destroy lives there frequently because insurance is not mandatory.

The developing nation blindly ignore the externalities of not having insurance (instead of spreading the cost throughout society, only a few people bear the brunt of it, usually the ones least equipped to handle it), so your example is great only if you assume its fine to continue to beat down the poor. There's a reason developed nations have developed such "red tape" and the anti-vaccine movement here in the US is finding out what happens when the red tape is removed.

You can build as many electric cars as you want, it's not going to resolve 8 hour workday or the cost of living crisis or the housing crisis. All of that is a social coordination problem, and the tools to resolve that will emerge from the humanities and the finance industry, not hard engineering.

Furthermore, people want those white-collar jobs you detest, and not everyone is inclined to R&D as this forum might think. The real problem is how technological progress has not been properly applied to improving white-collar productivity as opposed to just filtering, funnily enough of which this very thread is about regarding university.

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