The Reverse Black Swan, Part II – BusinessWeek
Reading and thinking about Taleb leads me a different answer than I would have given 6 months ago. Yes, we need more regulation—but it should be ‘regulation by simplification’ rather than ‘regulation by supervision’.
Why? As a technological optimist, I believe in innovation as the major force for growth over the long run. So one important part of policy is setting up the conditions under which technological innovation can occur. That means supporting R&D and education, encouraging venture capital and entrepreneurship, and making sure that government regulation does not get in the way of ‘good’ innovation.