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how is that regulatory capture? I can see over regulation, maybe, but what did any of that have to do with the regulating agency doing the bidding of those its
by joshAg 13y ago
how is that regulatory capture? I can see over regulation, maybe, but what did any of that have to do with the regulating agency doing the bidding of those its regulating instead of acting for the public good?
- snowwrestler 13y agoThe best clue it is regulatory capture is that despite the regulations obviously being so burdensome and slow, an incumbent business is supportively enumerating them rather than complaining about them. Why? Because the barrier to competitors is more valuable to them than the burden of the regulations.
- gizmo686 13y agoRegulatory capture refers to the effect, not the motivation. Even if done with the best of intentions (and even at the protest of the industry), regulation almost always has the effect of increasing barrier to entry, therefore causing regulatory capture if there is enough of it.