Oct. 22, 2023
The predictive data analytics plan will likely create more problems in a classic government vicious cycle. The central premise is that the consumer is too stupid to make their own decisions and the ever intelligent government is the only entity that can protect us from our own ignorance. This plan will further increase the already massive regulatory moat in the financial space, reducing competition and market efficiency. Consumers can now choose whatever platform they like. If they don’t like some feature or feel that an aspect is adversely manipulative they can leave. Under the new proposal platforms will be subject to interpretations by some extremely small panel. The judgement by a small group of uninterested govt workers is invariably less efficient than the entire market of consumers choosing for themselves. Every market EVER is try to manipulate the consumer to VOLUNTARILY buy their product. This is not some novel concept. The government should not be the arbiter of what they feel that the consumer would like. Imagine a proposal where the government feels that crunchy peanut butter is less tasty and therefore less manipulative to the customer. The government could then logically ban creamy peanut butter. Independently this is likely going to be rife with corruption. You no longer have to beat the other financial platforms with a great product you just have to say “hey Gary don’t you feel that everything about that new financial app is manipulative?” All they have to pay off is a small panel of govt officials . You cannot bribe every discerning consumer on earth. Saul