Today’s Term

“Regulatory Capture”. First we go to Wiki:

Regulatory capture occurs when a state 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. Regulatory capture is a form of government failure, as it can act as an encouragement for large firms to produce negative externalities. The agencies are called Captured Agencies.
For public choice theorists, regulatory capture occurs because groups or individuals with a high-stakes interest in the outcome of policy or regulatory decisions can be expected to focus their resources and energies in attempting to gain the policy outcomes they prefer, while members of the public, each with only a tiny individual stake in the outcome, will ignore it altogether. Regulatory capture refers to when this imbalance of focused resources devoted to a particular policy outcome is successful at “capturing” influence with the staff or commission members of the regulatory agency, so that the preferred policy outcomes of the special interest are implemented.

“Regulations” are simply a waste of time when those folks have some politician in their back pocket. But, peps are pissed.

What a spectacle this has been, with the anchors from MSNBC, the various columnists and his Newsweek Boswells furious and frustrated that the President hasn’t demanded the heads of BP executives on pikes. All he’s done so far is allow his Attorney General to loudly announce a criminal investigation of the spill—nothing demagogic about that—in mid-crisis and without any apparent criminal behavior on the public record.

The liberals’ fury at the President is almost as astounding as their outrage over the discovery that oil companies and their regulators might have grown too cozy.

Say what? But Booosh ….

(AP photo)

Perhaps if liberals read more conservative economists, they might understand that this is a common consequence of the regulatory state that they have so diligently constructed over the decades. It is also a main reason that many of us are skeptical of the regulatory solutions routinely offered in response to every accident or business failure.

“Regulation” isn’t really regulating anything if the politicians and the regulators and the companies advisors and the investors are all buddies. Hob-nobbing together. Or, you know, letting them live rent-free in their apartment for five years.

Emanuel lived for five years rent-free in an apartment owned by Rep. Rosa DeLauro, D-Conn., and her husband, Stanley Greenberg, whose consulting firm was a prime architect in BP’s efforts to recast itself as a “green” corporation and recipient of hundreds of thousands of dollars awarded through a committee chaired by Emanuel.

Yea. Nothing to see here. Move along.

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2 Comments on “Today’s Term”

  1. Hotspur Says:

    Shoulda seen the lunatics demonstrating in front of the federal building here in Ann Arbor last evening.

    I laughed at them as I went by.

    I even saw signs blaming Obama.

  2. Car in Says:

    Ha. You know living in AA you should always travel with a camera.

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