Zach Newton, Chapter 4, Question 6

The section in this chapter that I found interesting was the part about the "helping hand" versus "grabbing hand" of the government. This question exists because sometimes, rather than the government reaching out to help people, it reaches out to take money and put it in the pockets of corrupt Bureaucrats. To me, the craziest fact mentioned on this subject was that "in poor countries like Vietnam, Mozambique, Egypt, and Bolivia an entrepreneur has to give up an amount equal to one to two times his annual salary (not counting bribes and the opportunity cost of his time) just to get a new business licensed." One of the negative aspects of this heavy regulation on entrepreneurship in poor countries is that businesses will go underground with no regulation in order to avoid these high start-up costs.