he doesn't address the most common argument for regulation which is that sometimes businesses are extremely dangerous to customers and employees.

I think the implicit argument is that the risk is worth it, because the costs of regulations are so high elsewhere.

Humans supposedly love regulation because we are generally irrationally risk averse and can signal good stuff about ourselves by proposing legislation that sounds good to our brains which interpret it as guidelines for a small stone age tribe of a few dozen people rather than setting guidelines and rules that will live a life of their own in institutions that govern millions of people.