Regulatory Capture is Government Failure

Regulatory capture has to do with influence an industry may have on an agency that regulates it. Obviously, vested interests in an industry with the greatest financial stake in the regulatory activity of that agency, are more likely to attempt to influence that body than would individual consumers.

Members of the consuming public would have little incentive to try to influence the regulators. We would therefore expect that when regulators assign experts to help review and decide policy, this will lead to opinions of former industry members in contact with that industry.

I feel there are some agencies where industry input is essential. High tech and medical are examples. But it is important that independence be truly and consciously maintained

This regulatory capture syndrome extends beyond political agencies and organizations into business, media, and popular culture.

The concept of regulatory capture is one of government failure. Yet, the media and the Left constantly attack the problem as one of a free market shortcoming.