Regulation
Regulation is the main topic that Bylund is trying to hit on in this point of his book. Regulation is another very important topic to seriously consider when deciding whether or not to start a venture, or deciding how you would like to run your venture. It can be a very tricky topic to grasp, but it is very important to understand and learn some of these important aspects of regulation. Bylund begins to build on what was said to build on from some of the previous modules to help us better understand both the obvious and the hidden effects of regulation and how it pertains to entrepreneurship. Most importantly, this is where the idea of the unrealized is developed and described. Bylund begins by saying that regulation that doesn't work isn't interesting and that we should instead focus on the kind that does change how the market works.
He talks about the differences between the types of rewards and disincentives. Bylund gives an example of an individual who is a kind and wealthy policymaker, almost like a good king, who wants to solve society's problems by putting in place rules that, in his mind, will make everyone's lives better. Strangely, this character doesn't collect taxes. Instead, he uses his own money and political power to steer the market in the way he thinks is best for society. Bylund says that handouts should follow the rules, which is something very interesting to think about.
There are several reasons why regulations may be ineffective, but the outcome of ineffective regulation is the same: no or at least insufficient change.
Bylund is stating that ineffective regulation can be something that is very hard to work through and can cause a venture many problems because of the lack of change that it provides. I really like that he put this in here and it was a very good way to think about regulation and when it is ineffective.
Rules
Bylund's explanation of why market rules are even more detrimental than disasters for the economy is one of the most significant theoretical takeaways from the book, and it's also one of the most interesting. This can clear up some of the cloudiness that some young and even older entrepreneurs have on regulation, and how they can relate it to their own venture or even a future venture. This is the case due to the fact that regulation prevents development from taking place, whereas demolition abruptly returns the market to a stage in which it had the least amount of progress.
This realization effectively offers a line of reasoning that may be used to debate policies of any kind from a vantage point that is much distinct from the one that is typically utilized. It is possible that this could become part of a more extensive research program in the future, and it is very important that Bylund highlighted on this in this portion of his book.
Unknown
Bylund emphasizes that the future cannot be known, but it can be imagined to some extent, and I think that this is a very important thing for an entrepreneur to understand, not closing doors to opportunities can be a big aspect. Opportunities can come from anywhere, and entrepreneurs are the best at taking opportunities and maximizing their potential in society. In order to imagine and create the future by coordinating the various production processes, it is the responsibility of the entrepreneur to rely on the abilities that he considers to be the most marketable and productive ones. This is the portion of the book in which Bylund describes how shifts in one segment of the market will bring about a chain reaction of additional shifts, and how many of those adjustments will take place in segments of the market that are not immediately connected to the segment in which the change initially took place. This is the part of the book where Bylund illustrates how something unexpected, like a broken window or a natural calamity, will have rippling effects that are typically unexpected. Particularly in this section, Bylund levels severe methodological accusations against the state of economics as it is now practiced, and how it has deeply impacted society in many ways.
...totality of exchanges affects how entrepreneurs anticipate that they will be able to satisfy consumer wants;...
Targeting the right times,and where to target can be a huge aspect of successful entrepreneurs, leading to more sales and satisfying consumers. Entrepreneurs have to make adjustments based on who or what they are targeting, making tough decisions and if done right, can lead to success in the future. Bylund also continues to highlight the importance of a good production plan, because often times, having a good production plan can save your company lots of time and money in the long run to make you more successful.
Bylund does a very good job of highlighting key aspects to continue to build on what he is trying to accomplish, building the next great entrepreneurs for the future.
This was an interesting statement, and one that I did not necessarily gather in my own personal reading of these chapters. Bylund spent quite a bit of time talking about the “regulations that don’t work.” He calls these ineffective regulations. These are the regulations that fail to actually alter human behavior. He goes into detail on different ways in which regulations might be ineffective. For example, it could be that it is not measurable enough, which would make a regulation really easy to get around. I think this is a topic you could spend a bit more time looking into incase you missed that idea.
I really liked your section titled “Rules”. I think you did a really good job summarizing Bylund’s ideas surrounding the different economical effects of disasters and regulations. I too found this section very interesting when reading the material for myself. I think that Bylund did a really good idea at explaining how rules can destroy not just one market, but many rippling markets. I also really liked when Bylund talked about the economic bounce back after a disaster. In the book, he used the example of war. If a town was devastated during a war, then there was a large economic boom afterwards, does this mean that the war was good, and that we should go to war more often for economic growth? No. Of course this isn’t the case. Bylund uses a similar train of thought when using the example of the shoekeeper and the broken window. I think this is a really large part of the chapter that you missed out on covering.
I think it would have been valuable for you to spend a little bit more time talking about Bylund’s reflection on Bastiat’s idea of the ripple effect. The example that I mentioned just above about the shoe keeper and the broken window is Bastiat’s main idea in explaining the ripple effect, and this is where he made the distinction between the seen and the unseen. This really helped me personally understand the ripple effect, and I think it could have been really good to review that idea in detail a little bit more.
Another thing that Bylund covers at the end of chapter seven is prohibition. This was something that I did not see covered in your essay. What Bylund says about prohibition is that this is regulation on an extreme level. It removed the aspect of giving entrepreneurs choices like we saw in Bylund’s example of the five nail makers who faced regulations. I think the way you talked about rules earlier in your essay, you could have added a little bit about prohibition and how that is the extreme level of regulation, and its effectiveness.
Overall, I think you could have been more thorough in your analysis of Bylund’s chapters 5 and 7, but I think you did a good job on an overall broad fly over. Your organization and formatting is well done, however you are missing in text citations and proper citation of your direct quotes.