Investing Formula: F1 vs the US Economy

Pinnacle Digest writes: Holmes compares the evolution of the Formula 1 Grand Prix, and the super cars which race in it, to the US economy. Frank does this in an effort to expose the backwards evolution of the markets and business environment. He argues that the F1’s fine-tuning of regulations to respect the risks and rewards, while at the same time promoting speed and efficiency, should be what government policies aim to achieve for our economy. In reality, unlimited regulation continues to act as speed bumps, slowing our economy down and damaging the vehicles or business which have to operate amidst them.

Just like in sports, officials and regulation are needed to maintain healthy competition, but what we have in America is the strong influence of the outcome - and nobody wants that.

Holmes questions the reader: Would Steve Jobs have been able to create the world's most valuable company if he was swamped in regulations? Apple’s success is an example of what can be accomplished in a free market with sufficient regulation. American law makers and regulators need to remember this. If America ever wants to create the competitive edge it once thrived on, a more balanced regulatory environment needs to be created.


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