UK Red Flag Act Stunted Auto Growth, A Cautionary Tale for AI

Dan_Jeffries1 · x · 2026-08-19

The author revisits the UK's 1865 Red Flag Act, which required a person with a red flag to walk ahead of cars and limited speeds to 4 mph. This regulation caused the UK's auto industry to lag behind France, Germany, and the US for 31 years. The author draws a parallel, suggesting that declining powers often create regulatory frameworks to make decline look responsible, implying over-regulation could stifle emerging technologies like AI.

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