You give "business" too much credit and you give what consumers want too much credit too. The past 100 years of our history are full of case after case of businesses doing the bare minimum because it tends to be the cheapest option that maximizes profit and this has been to consumers' detriment. Consumers didn't ask for seatbelts, they denounced them as another sign of government overreach. Consumers didn't ask for fuel injection either. Many times consumers have no idea what they are missing until regulation forces an industry to develop an innovative solution to a regulatory problem.
Respectfully disagree in large measure.
The European manufacturers, mainly MB, BMW, Porsche, and Volvo, due to their experience in racing, and as part of the corporate decision to simply build safer cars, started innovating around safety and engineering (crumple zones, fuel injection, four wheel disc brakes, three point belts, etc.) advancements that the public in Europe and the U.S. saw, and liked. Regulators caught on that these were legitimate safety and engineering advances, and picked up the baton to pass them down to the rest of the market. But I am old enough to remember that people were asking why the neighbor’s 240 Volvo had three point belts and big head rests all around, and the Chevy or Ford family haulers did not. And it was at that point that the market started to change , and the insurers caught on that a BMW or Benz, while more expensive to fix, were a hell of a lot safer per miles driven. And that is when we saw the American and Japanese manufacturers start to pay some degree of attention to safety. And yes the regulators helped push it along. But it was racing and the general excellence of the engineering culture at these Euro manufacturers that really educated the public. The regulation followed.
Now we have it in reverse. To take one example, the Euro manufacturers come up with a relatively clean diesel technology and the regulators make it impossible to sell. Everyone instead is mandated to go electric, which simply shifts the environmental burden from the drive cycle to the
manufacturing cycle. And no one is being honest or realistic about the grid improvements or base power improvements that will be needed to plug all the cars in at night. If you believe in climate change and don’t want nuclear then you aren’t a serious person on the issue from a policy perspective because renewables won’t do it alone, particularly if you force up in time that time when the market will be mostly electric.
I don’t think regulation is pointless. Far from it as there are many examples where it is needed. But safety with cars is not a good one. That train had already left the station and was well down the tracks, led by a relatively small number of Euro makers who had a strong engineering and safety culture.