In economics, regulatory capture occurs when a state regulatory agency created to act in the public interest instead advances the Government or special interests that dominate 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 entities to produce negative externalities. The agencies are called Captured Agencies. Obama does not care what Congress does or does not do his plan is to Transform by Regulations!
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. Meanwhile members of the public, each with only a tiny individual stake in the outcome, will ignore it altogether. More to the point, they are to busy getting more free stuff!
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. George Soros has a plan and it involves the destruction of America. How best to set this collapse in motion? Set up so many regulations that no business venture can succeed and then watch the dominoes fall! He was successful in Great Britain and he has set the same plan in motion here in America.
Regulatory capture theory is a core focus of the branch of public choice referred to as the economics of regulation; economists in this specialty are critical of conceptualizations of governmental regulatory intervention as being motivated to protect public good. However, the Marxist Media are not covering these critical comments.
The risk of regulatory capture suggests that regulatory agencies should be protected from outside influence as much as possible, or else not created at all. A captured regulatory agency that serves the interests of its invested patrons with the power of the government behind it is often worse than no regulation whatsoever. What would happen if “BigGov” set out to circumvent congress by regulation? Do you understand the plan that has been put into play?
The idea of regulatory capture has an obvious economic basis in that vested interests in an industry have the greatest financial stake in regulatory activity and are more likely to be motivated to influence the regulatory body than dispersed individual consumers, each of whom has little particular incentive to try to influence regulators. As well, we would expect that when regulators form expert bodies to examine policy, this will invariably feature current or former industry members, or at the very least, individuals with contacts in the industry.
However, these regulatory agencies have become so huge and powerful that they can actually circumvent Congress and the Constitution. What we see now is Obama using these agencies to transform America by regulation. The Transformation of America has begun! Did you really believe that “Hope and Change” meant anything else?
Government “help” to business is just as disastrous as government persecution… the only way a government can be of service to national prosperity is by keeping its hands off.
Ayn Rand
Myindependentword's Blog 