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Of course its simplistic, but it proves the point. Govt regulating the internet will end up just like government regulating property. Or air travel, or healthcare, or space. It will make it less frequent. The solution is to keep regulation as minimal as possible. Not to have the FCC involved in everything. The internet is what it is because govt has largely stayed out of it. Its the wild west.
I don't think it proves the point at all. I just gave an example of one of the most painful instances of regulation. Yet no one would want to do away with patent law.
The quote "if you regulate something you'll get less of it" may be a good talking point, but it's certainly not true. There are good regulations and bad regulations. FDIC? Auto insurance mandates? Without these you'd certainly have fewer cars and deposits.