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A lot of consultants and contractors (and would-be consultants and contractors) end up getting screwed by the reluctance to hire consultants and contractors created by such regulations. Laws and other governmentally enforced regulations are merciless and do not differentiate between cases that should actually be controlled and cases that just happen to coincide in some details with those that should be controlled, but themselves are actually harmless -- or actually helpful -- if left alone and allowed to flourish.

Ultimately, the real problem is not too little regulation: it's too much in the wrong places.