(A Response to Paulson Committee efforts as described in "Businesses Seek Protection on Legal Front" by Stephen Labaton in the 10/29/2006 New York Times)
by William P. Meyers (bill@iiipublishing.com)

Free markets being the wonderful, demi-god like things that they are, I think that it is time to set up a regulatory agency for thieves. No, not the Enron kind of thief, I mean the ordinary, shoplifting, house burgling, knock-you over the head and get the $16 that is in your wallet type of thief. Just as corporate America and the American people have benefitted from business regulations, we would all benefit from the regulation of thieves. On the national level we would set up a Thieves and Burglars Commission (TBC).

The most immediate impact of regulating thieves would be the reduction of the number of thieves in prison. In most states the maintenance of prisoners is, on a percentage basis, one of the top government expenses. That means state and local taxes are far higher than they would be if the prisons needed to hold fewer prisoners. Most tax payers lose far more to such taxes than they do to thieves. Since thieves would no longer be criminals, but rather would be joining the world of businessmen, it is even possible that their increased activity would be economically beneficial.

How would the system work? Like any other regulatory system. All thieves would have to register with the TBC and fill out paperwork on a regular basis. Congress or the state legislatures would give some general guidance, but mostly leave the making of regulations to the TBC. The more organized thieves would lobby the TBC to make sure that regulations are fair to thieves and that the paperwork not be too burdensome. The public would have input too, but it would be ignored most of the time.

It is hard to predict how exactly the regulations might work out, but by examining the regulations created by the EPA (Environmental Protection Agency), SEC (Securities and Exchange Commission) and other existing agencies we can get a general idea about the TBC regulations. A certain degree of thievery would be tolerated as completely legal. Say any single act of theft not involving violent harm to an individual and having proceeds valued at less than $200.00. However, thieves would have to record these incidents and pay all appropriate local, state, and federal taxes on the proceeds (less deductions for business expenses).

In a second tier, say $200 to $5,000, there would be a small fine involved. This would help defray the costs of running the TBC. Also, the citizen whose money or property had been stolen would have the right to apply to the agency to recover part of the theft, say 20%, if they were willing to spend years going through the TBC bureaucracy to do that.

Thefts larger than $5,000 would be strictly prohibited. The TBC would be allowed two or three enforcement officers to police the entire country to make sure this did not happen too often. If caught violating this regulation a thief would have to turn over everything over $5000 to the TBC, apologize to the victim, and be prohibited under penalty of actual jail time from thieving from said victim for a period of 5 years.

For those worried about violence, a separate penalty for each incidence of violence accompanying a theft would surely make thieves think twice about their business methods. Same for arson.

Thus (as with our current environmental, banking, and securities law) business thieves could make a rational choice as to when to engage in activities discouraged by regulation.

A whole new era of prosperity awaits our society. Thieves would serve the markets, transferring funds from those who have too many to those that are underpaid for their business activities because of market inefficiencies. Young men would finally have a reason to learn to read and write, so that they can fill out the necessary paperwork. Taxes would be down. Instilled with the pride of legality, once they amassed some capital thieves might even move into other legitimate businesses like floating small loans, becoming stock brokers, or even real-estate speculation.

It is time to realize that humans can’t be free until markets are free, and markets can’t be free while profitable activities are against the law. The most important thing about the regulatory apparatus is that it not be burdensome on those who would be making the world a better place through business activities.

There is one dark side to the regulatory system. Often those who are regulated actually seek to make regulations more burdensome in order to prevent new players from entering their markets. They might, for instance, insist that new thieves post a bond against future fines. This and other economic hurdles would defeat the very purpose of the regulatory system.

But that is all in the future. The important thing right now is to set our businesses free of the yoke of hard and fast laws that outlaw all activities without considering their relative merit to our business economy.

Copyright 2006 by William P. Meyers