In a lecture given at the London School of Economics this month, Professor Markus K. Brunnermeier (Princeton University) said:
Federal countries--like the United States, or like Switzerland, or like the Federal Republic of Germany--are very legalistic entities because you need lots of laws--lots of rules--to work out how the bits of the federation deal with each other.
What is it that creates the need for so many rules?
Are large quantities of laws common because of the organizational structure like Brunnermeier said? Is there something about the structure of the government that necessitates so much legislation?
Do federal governments just tend toward increased regulation more than other forms of government? The minimum wage is a price floor that may not be at the market equilibrium. Would the minimum wage have likely been implemented as universally as it has been had the United States been set up under a different form of government?