Possible Heightened Regulation on Banks Similar to Attempted Regulation of Microsoft in Late 90s

Remember when the Department of Justice thought Microsoft violated antitrust laws so they tried to coerce the company into integrating their competitor’s browser in their software? Well it’s a good thing for all of us that they failed. Regulating Microsoft would have inhibited the fast-paced innovation in this industry, which probably would have stunted the growth of what is currently one of the most high-tech, creative companies in the world, Apple. And where would we all be without our beloved iphones or Apple’s newest gadget, the iPad tablet? The mass fear of a monopoly by Microsoft never played out and instead more fierce competition bloomed with the rise of Apple.

Now, Americans are facing a parallel situation. Should the government heighten regulation of the banks? Should the government step in and place more controls on the banks? The answer is no—it will deter competition, innovation, and growth. The government currently is in need of a scapegoat and the big banks are the perfect target, just as Microsoft was in the late 90s. We should use history as a guide and avoid making the mistake of intervening with market forces. Competition will ensure prosperity and growth in the long run as it did in the tech industry, while augmented regulation will only inhibit it.

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