What Is Regulatory Capture?

"Regulations actually benefited the regulated industry at the expense of consumers." Watch as Susan Dudley explains who really benefits from regulations and how that effects the economic freedom of individuals.

George Washington University professor, Susan Dudley, explains the concept of Regulatory Capture.

Produced by Sean W. Malone

Category:

Nonprofits & Activism

Tags:

• Economics
• Regulatory Capture
• Cronyism
• Corporatism
• Big Business
• Big Government
• regulations

[macrokernel]

Ahh, liberals calling for more government regulation, unaware of the harm it has effected to small businesses.

Such useful idiots they are to the corporations that they oh-so despise! :)

[apell711]

This is perfect! Now I can just show this next time I've got a socialist or a Keynesian telling me we need more regulations.

[alphaprime66]

I certainly wont deny that there are instances where corporations are abusing gov't power, however, it seems that people here assume that no regulations are better than some. I don't favor the idea of letting corporations roam rampant without any checks or balances. I understand that you would contend the free market would do so however this hasn't proven true at every turn and thus led to the involvement of governments.

[elnik32]

You cannot regulate something you don't understand and since politicians don't understand the economic problems besetting the US, the chances that they'll come up with the "right regulations" are slim, but that's certainly not going to stop them from trying to

[TakeshiAndTheKid]

@macrokernel Or you know, you could just regulate large corporations

[Buntzums]

That's why it's just an old theory. In practice, without some regulation consumer price point will have us buying melamine toast.

[vakeraj]

@Notsorandomnumbers As long as government has extraordinary power- to tax, regulate, subsidize, and otherwise control the economy- it WILL be corrupted. No amount of campaign finance reform, rules against revolving doors, etc can stop the abuse of this power by special interests.

[jonathanaconway]

@Notsorandomnumbers You're attacking the symptoms and not the cause. Lobbying is a *result* of government having the power to regulate industry in the first place. And what's your solution? "My regulations would do it better?" How would your regulations not pave the way to government control and lobbying? By their very nature, regulations open the door to industries serving lobbyists rather than customers.

[Notsorandomnumbers]

All this says is that money needs to be taken out of politics in the corrupt American system. This makes absolutely no argument against actual regulation.

[alphaprime66]

@dubified89 There is sense in it. I'm saying that Currently bad people will continue to make bad choices as they have already proven. The answer isn't more regulations or less regulations it's the right regulations.

[dubified89]

@tuvyag Did you watch the video? The government energy efficiency certification was actually a scam concocted by washing machine manufacturers in order to force people to buy expensive washing machines that they didn't want to buy voluntarily.

[dubified89]

@alphaprime66 What you said just made no sense. This video illustrates that companies routinely invite government regulations in order to benefit themselves and screw over competitors and consumers.