Rhythm Rhyme Results

Lyrics

Chorus
Regulating this, regulating that
Regulation takes monopolies and wipes 'em off the map
Regulating this, regulating that
If you're killing competition then you better watch your back

Verse I
In the late 19th century, cartels and conglomerates
Were dominating industries, now, what could be wrong with this?
If you said "unfair competition", then you get it;
We needed government to intervene and correct it

So in response to the consolidation, Congress got to working fast
Came back in 1890 With the Sherman Act
Based on the fact that competition's good for an economy
so all this aggregation of market power has gotta be stopped!

Price fixing was made illegal _per se_
Meaning there were no circumstances that made it OK
Other practices were judged by the rule of reason:
It's OK to be big as long as you're not cheating

Nowadays, we've become a little more lax
Herfindahl-Hirschman helps us keep track
And to assist the US in competing with the EU,
Congress looks at antitrust with a broader view...

Chorus

Verse II
Theories of Regulation, I'll explain the main two:
(1) Public Interest Theory holds that a regulatory crew is always
Looking for solutions that promote market efficiency
Serving the interests of the consumers, that means you and me

That's why they regulated telephones and power
guaranteeing that they'd be there every minute, every hour that we need 'em
Corporations giving up some of their freedom
'Cause when regulations drop, please believe they'd better heed 'em

(2) There's also the theory of Public Choice
Which says the regulators listen to the corporations' voice
See, they might improve efficiency, but they might not
They could be lobbied to protect what the corporation's got

By erecting some regulatory barriers to entry
Acting like a sentry, or sometimes just preventing
Price competition that would otherwise be fine
Except for what it does to the bottom line

Chorus

Verse III
"But what about protecting consumers?
Like, if a company's products are causing cancerous tumors?
Can the government prohibit it or maybe just impose a tax?
Or is it up to you and me to gather all the facts?"

That's a dilemma, there's no definitive answer
Adults who smoke accept the risk of lung cancer
But even if economists see demand that's unmet
Children aren't allowed to smoke because they're not mature yet

There's lots of choices that could risk your life
That the government makes so no one has to pay that price:
Seatbelts, bike helmets, childproof medicine caps
We just hope precautions don't mean careful behavior will lapse

Some of the critics say the poor get hurt
Gotta pay more to lessen risks that they maybe don't want to avert
It always helps to do a cost-benefit analysis
If you can put a price on paralysis...

Chorus

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Description

This rap song teaches about government intervention and regulation in economics. "Regulation" describes key terms such as the Sherman Antitrust Act, price fixing, and Herfindahl-Hirschman. Verse 2 describes public interest theory and theory of public choice in more detail. Verse 3 describes consumer protection and cost-benefit analysis.

This economics song is suitable for explaining government regulation to high school, college, and graduate school students.

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Related Reading and Activities

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State Standards

State standards listed here are representative of school standards across the United States.

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