.........................wandering through the Intertunnel thicket:
Legislation often backfires because the majority of congressmen are lawyers who try to fix most things through imposing procedures and regulations rather than altering incentives. These lawyer-legislators prefer to force the sinner to repent rather than making virtue more attractive. Perhaps they ignore incentives, since in their careers, they have experienced only two: bill more hours and get reelected.
The SEC believes that “sunlight is the best disinfectant”–disclosure is the cure for everything from insider trading to cancer. Had they hired a few gardeners to complement their staff of brilliant lawyers, they might have learned that sunshine also makes weeds grow. As the SEC required more disclosure about CEO pay, pay increased relentlessly because more disclosure made it easier for everyone to know what everyone else was making–and to leapfrog to the next higher level.
source is here
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