Red card for reduction of red tape

Daniel Wild’s “Hayne is the green harbinger of more red tape” (December 10) misses the point.
The article states: “At the heart of the government’s agenda is red tape reduction and a reshaping of the bureaucracy to better serve the interests of mainstream Australia.”
Surely, the Hayne royal commission showed why red tape and regulation is needed. Capitalist systems inherently reward those businesses that maximise price and minimise risk. Economists call this externalising risk by pushing risk onto employees, suppliers, customers, shareholders and into the future, which maximises short-term results. This process also maximises current managers’ bonuses to the detriment of shareholders.
Research by mathematics professor Bruce Boghosian of Tufts University written up in the Scientific American shows that without red tape and regulation, all the wealth will inevitably fall into the hands of the people at the top.
No doubt this would make the limited supporter base of the Institute of Public Affairs very happy.