Dr Eric Crampton: Anti-Money laundering laws hurt competition, and vulnerable groups

It isn’t that there are never $20 notes lying on the footpath, it’s that when markets are working well, there are strong incentives to find and pick them up. A $20 note shouldn’t have to wait very long before being grabbed.

When someone insists there are $20 notes on the footpath, it’s a good idea to check whether it’s simple and legal for someone to go ahead and collect them. If it is, are we sure the free money isn’t a mirage? If it isn’t, that tells us where the work needs to start.