Of regulatory capture and finance, a reader writes:
This is exactly how Stigler describes regulatory capture happening. If you're going to regulate trucking intelligently, you have to get people who know about trucking. The only place to get them is industry (by and large) and industry is the only place they can go back to after serving at the agency, other than academia where they train people to either go into industry or agency. Pretty soon, the agency makes rules for the benefit of the incumbent players, industry takes out ads welcoming the new mandate, innovation dies, stasis prevails, and we all end up working for the betterment of Goldman Sachs.
I said in my previous post that this could be avoided. But is this true? I'd like to hear both bloggers and readers nominate their candidates for regulatory agencies that work. They don't have to be perfect, just basically functioning the way we'd want them to. I'll nominate the FDIC; readers of all political persuasions are invited to offer candidates for what agencies work, and why they might be different.
I am not interested in comments focused on the agencies you don't like, or your belief that there is no such thing as a good government agency. For the purpose of commenting on this post, accentuate the positive!