The problem is more about regulatory capture. An industry adapts to a regulation, and creates winners and losers. Once the regulation no longer makes sense (cos

The problem is more about regulatory capture. An industry adapts to a regulation, and creates winners and losers. Once the regulation no longer makes sense (costs taxpayers/consumers more than it benefits), those who are winning from it have a strong interest in keeping it around anyway. A good example is the state franchise laws against car manufacturers owning dealerships. Why can't Toyota sell me a car directly? Direct manufacturer sales seem to work fine in other contexts (e.g. Ikea). In Europe they're moving more and more direct sales. There's no good reason to keep them here in the US, but the dealership owners who benefit from these laws are the only people impacted directly enough to bother hiring lobbyists.