Its exactly this. And the majority of persons in powerful regulatory roles completely don’t get or comprehend this effect.

When regulatory efforts depart from reality,and fail to find the correct middle ground, this happens:

The reality still exists, and will always find its expression in one of the following:

- people circumvent rules and go criminal

- undesired behaviours move elsewhere where the regulation doesn’t exist

- sections of an economy die

- issues remain unaddressed with the over regulated issues becoming too taboo to even discuss in a sane way.