Why is Regulatory Capture Important to Understand?

By way of clearing up two myths, we’ll begin to gain a deeper understanding of regulatory capture:

(1) We do not have free market Capitalism in the United States. We have what some call Corporatism and others call Crony Capitalism.

(2) “Corporation” is a government-protected entity, so: removing government means firms no longer have the following government-sanctioned benefits:

• Limited liability.
• Regulatory capture (where corporations write or influence regulation through bribery lobbying and revolving doors for CEOs/gov officials – to favor their company and make it hard for competitors and newcomers to enter the same industry). More on regulatory capture.
• Favoritism via government created laws.
• Favoritism via government granted contracts.
• Favoritism via government granted patents and copyrights.
• Tax breaks.
• Bailouts.

What about consumer protection?

Replace the “need” for government watchdogs. Think peer-to-peer review/reputation apps like Yelp and ConsumerReports.com, as well as how many others are including ratings in their apps, like AirB&B and Uber. I’m sure other, possibly better, watchdog apps and sites have sprung up. See https://clearsay.net/voluntaryism-law-security-without-government/.

A funny/sad look at where current policies could lead us

A satire short animation written and produced by Scott Swain
https://open.lbry.com/@Voluntary:4/Homies-2020-06-10-720p:7?r=83dJFemMzAaa5e9gcoYh1RQipJcd3DDJ
"Homies in the year 2040 share rumors with Old Man Bob that on the outside, you can get food from the dirt and water from the sky. They ask him what it was like before the Transition when people could keep their balls."

Want to go deeper?

For an in-depth look at what you can do to move yourself and the rest of us in a more positive direction, look at: https://clearsay.net/create-better-world

As always, I appreciate you taking the time to read this!