The Selective Enforcement Economy

The Selective Enforcement Economy

When those in power breach the law, repercussions are rare. The SNC-Lavalin affair in Canada exemplifies this. In 2019, Prime Minister Justin Trudeau's office was accused of pressuring Attorney General Jody Wilson-Raybould to halt a criminal prosecution against SNC-Lavalin, a major engineering firm with political ties. Despite evidence of interference, Trudeau faced minimal consequences, showcasing how political influence can distort justice.

In the United States, the 2007 commutation of Scooter Libby's prison sentence highlights similar disparities. Libby, former chief of staff to Vice President Dick Cheney, was convicted of perjury and obstruction of justice. Yet, President George W. Bush commuted his sentence, allowing Libby to avoid imprisonment—a privilege seldom afforded to ordinary citizens.

This pattern extends globally. In Russia, following President Vladimir Putin's re-election and the appointment of a new defense minister, numerous high-ranking military officials linked to the previous administration were arrested. These actions appear more about consolidating power than genuine anti-corruption efforts.

In Venezuela, between 2014 and 2018, over 12,000 perceived political opponents were arbitrarily detained, with nearly 6,000 extrajudicial killings between 2012 and 2016. Such measures serve to suppress dissent and maintain political control.


Small Businesses Overburdened by Regulation

While the powerful sidestep consequences, small businesses often face overwhelming regulatory challenges. For instance, licensed hemp retailers in New York experienced aggressive, warrantless raids by state regulators and the New York City Sheriff's Office. These actions, later deemed unconstitutional, inflicted significant financial and reputational damage on family-run businesses. The court emphasized that administrative convenience does not override constitutional rights.

Quantitative data underscores the disproportionate impact of regulatory compliance on small businesses:

  • Per-Employee Costs: Small manufacturers with fewer than 50 employees incur regulatory costs averaging $50,100 per employee, compared to $29,100 for larger manufacturers.
  • Tax Compliance Expenses: In the UK, businesses collectively spend approximately £15.4 billion annually on tax compliance. The Federation of Small Businesses (FSB) suggests the true cost may be closer to £25 billion, funds that could otherwise fuel business growth.
  • Time and Resource Allocation: Recent reports revealed that more than half of small businesses find licensing, certification, and permit requirements hinder their growth, and nearly half spend excessive time on regulatory compliance.

Internationally, regulatory burdens also serve as tools for political control. In Argentina, selective enforcement of tax laws pressures independent media outlets critical of the government. In Russia, small businesses perceived as politically inconvenient face sudden inspections and fines, stifling economic independence and dissent.


Implementing Equal Application of the Law

Selective enforcement undermines trust in legal institutions and perpetuates inequality. Addressing this issue requires concrete reforms:

  • Independent Oversight Bodies: Establish autonomous agencies to monitor and investigate regulatory and law enforcement actions, ensuring accountability and impartiality.
  • Judicial Independence: Strengthen the judiciary's autonomy through transparent appointments, protected tenure, and adequate resources, safeguarding it from political interference.
  • Transparent Enforcement Protocols: Develop and publicly disclose clear guidelines for investigations and enforcement, deterring arbitrary or biased actions.
  • Whistleblower Protections: Implement robust safeguards for individuals exposing selective enforcement or corruption, encouraging the reporting of injustices without fear of retaliation.
  • Public Accountability Measures: Mandate the publication of enforcement statistics, revealing patterns of selective application and promoting fair practices.


Conclusion

The law must serve as a shield for all, not a weapon for the privileged. The disparities highlighted—from political favoritism to the overwhelming regulatory burdens on small businesses—demand immediate and decisive action. Implementing the proposed reforms can restore fairness, rebuild trust in our legal systems, and ensure that justice is truly blind to status and influence. Without such changes, the legal system risks remaining an instrument of control rather than a bastion of justice.

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