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Regulatory capture is a separate issue from privatization. Regulatory capture is when there is a powerful government regulator, but it has been compromised by
by bgorman 7y ago
Regulatory capture is a separate issue from privatization.
Regulatory capture is when there is a powerful government regulator, but it has been compromised by the companies and is used to prevent competition to those companies.
For example - Boeing successfully convinced federal government regulators to prevent Bombardier from selling a 737 competitor in the US.
- arcticbull 7y agoIndeed, although I suggest that that comes about in part because the government fails to fund these organizations to the level required for self-sufficiency forcing them to outsource more and more of the work onto the only "competent body" willing to take on the job free of charge: the companies themselves. This creates a relationship where the companies have a disproportionate share of the power, and can dictate things like anticompetitive practices. It's basically a case of "give us what we want or your costs skyrocket."
- jstewartmobile 7y agoThat's all beside the point. As long as outside entities can dangle future low-effort, high-compensation posts to government officials in exchange for present favors, regulatory capture will remain a fact of life. It's an incredibly tough problem. Even if we prohibited regulators from ever working for the regulated, it's so easy to get around that with nonprofits and shell corporations.