In the realm of governance, regulation stands as a bastion against the excesses and abuses of power. Its purpose is noble: to safeguard the interests of the public, ensure fair competition, and maintain the integrity of markets. Yet, lurking within this noble mission lies a perilous phenomenon known as regulatory capture.
Regulatory capture occurs when regulatory agencies, tasked with serving the public good, are gradually co-opted or influenced by the very industries they are supposed to regulate. Instead of acting as vigilant watchdogs, these agencies become more like compliant lapdogs, serving the interests of the industries they were meant to oversee. The consequences of regulatory capture are dire, eroding public trust, distorting markets, and allowing unchecked power to flourish.