If there is no government regulation to impose restrictions by force, then a requirement that doesn't add value can't increase profits, because customers won't accept it; there will always be some competitor who sees the potential to out-compete you by not having a requirement that customers don't want.
Which is nice in theory, but absolute nonsense in practice, as evidenced by the number of no-value-add diploma mill accreditors and homeopathic regulatory bodies even under a regulatory regime where organizations can actually potentially be prosecuted for deliberately misleading people.
You honestly don't think that fewer people would get the medical treatment they needed if diploma-mill qualified charlatans were able to represent themselves as actual doctors or surgeons rather than having to go down the homeopathy/"alternative therapy" route?
Now you're talking about changing the current regulatory regime, not about getting rid of it--you're talking about diploma mills being able to give M.D. degrees that get recognized by things like state doctor accreditation boards. I agree that would be worse than what we have now, but it's hardly an absence of regulation; it's just making the regulations stupider than they already are.
A true absence of regulation would mean that individual people would have to make their own judgments about who was reliable, in health care and everything else. Sure, anyone could call themselves a "doctor", but that term would mean nothing by itself; it certainly wouldn't confer any special privileges on the person using it. If you wanted to know if a "doctor" was qualfied, you would look at his actual qualifications: where he got his degree, if he has one (and was it a diploma mill or a real school), where did he do his internship and residency, what sorts of cases has he worked on, what is his success rate in treating various conditions, etc. (Many people already look at these things even in our current regulatory regime, as evidenced by the number of websites whose business model is to provide such information.)
Would some people make bad decisions in such a regime? Of course. But people make bad decisions now. The question is which regime do you think produces worse decisions: a regime where everyone knows they are individually responsible for making good decisions, not just about what health care to get but about who to get it from, or the regime we have now, where people are encouraged to just accept particular credentials (M.D. degree, "board certified", on the list of preferred providers for their health insurance) as sufficient and not look any further.
You seem to assume that governments will magically do a better job than customers of regulating the behavior of market participants. They won't. That's why your models do worse in the real world than mine.
> There was days without regulations, they didn't come out of nowhere cause someone was feeling bored. I don't want to go back to that time.
What time, exactly?
> How do you explain the supplement industry then?
They are responding to market demand. If people are willing to buy supplements without having any information about whether they are safe and effective, then someone will be willing to sell them.
My solution to this "problem" would be to remind people that they will have to bear the consequences of their decisions, and then let them decide--and bear the consequences. That means people who make bad decisions will have bad things happen to them. But at least everybody is aware that it's up to them to not be one of those people.
Your solution is to have the government do the evaluation of whether the supplement is safe and effective--or at least be willing to prosecute sellers who mislead their customers. In other words, you think the government can somehow prevent bad things from happening to people who make bad decisions--or would, if they were allowed to make their own decisions instead of having the government decide for them. But, as someone else pointed out upthread, the government doesn't actually do that--even with all this government regulation, we still have industries like the supplement industry full of hustlers trying to sell people bogus products, and they don't get stopped by regulators and they don't get prosecuted when they deliberately mislead customers. So bad things still happen to people--but now it's worse, because people think the government regulations are protecting them, so they don't think they need to take any other precautions, but the protection they think is there isn't there.
