But what do we do about externalities, like when the value is for other people? I don’t get much value out of my turn signals, but I assume other drivers do…
Do you blindly assume that regulators are right 100% of the time? If they aren't , then by virtue of regulation being never removed in the long run, you will end up with inflated regulation for which some of it is done for no good reason.
This is absolutely true. This is how housing prices have gotten so bad in the United States, through incredibly insane zoning and all the other land use regulation around it.
Is there a particular regulation you would prefer to remove? If you list something specific, let's talk about other alternatives to removing the regulation that could cause better outcomes without reducing supply in that market.
Oh, wait. That’s what regulators are for :-)