This reminds me of a recent HN thread : How Rich Countries Die http://news.ycombinator.com/item?id=518776 http://news.ycombinator.com/item?id=518776 Over time

This reminds me of a recent HN thread : How Rich Countries Die http://news.ycombinator.com/item?id=518776 http://news.ycombinator.com/item?id=518776 Over time special interest groups work to reduce a society’s efficiency and GDP by enriching themselves -- in this case it's the financial industry. Another common idea is regulatory capture: http://en.wikipedia.org/wiki/Regulatory_capture http://en.wikipedia.org/wiki/Regulatory_capture Regulatory capture is a term used to refer to situations in which a government regulatory agency created to act in the public interest instead acts in favor of the commercial or special interests that dominate in the industry or sector it is charged with regulating. The SEC and other government posts like the Secretary of Treasury are unduly influenced by the finance industry. In fact, as the article points out, those government positions are often filled with alumni from the finance industry.