Sunday, April 25, 2010

Regulations Have Consequences


Sultan Knish

It is part of the basic theory of government that when the regulators try to regulate the regulated, the regulated will in turn try to control the terms of their regulation by attempting to influence the regulators. In other words, that which government controls, will try to control it. Because regulation is a two way street. By regulating people, countries and industries-- you are entering into a relationship with that which you regulate.

To rule over the unrepresented creates an unstable situation. And so the regulated will either attempt to indirectly or directly influence the regulators, overthrow them or escape their control. This too is an inevitable outgrowth of the basic theory of government, one which liberals tend to deliberately ignore when complaining about corporate lobbying. Corporate lobbying and donations to both parties are a direct product of the growth of government regulation, interference in industries, bailouts, grants and other forms of corporate welfare. The more government interacts positively or negatively with business, the more business lobbyists will try to influence how those interactions go.

There is of course one easy way to end most corporate influence on politics. But it is not one that the very people agitating against corporate money in politics will champion. That is because it requires them to give up power. Corporations are motivated to spend money in the hopes of either earning a profit or avoiding a loss. Spending money on lobbying would dry up if there were no profits or losses to be gained from doing so. But the very politicians who wail about corporate money, still expect those donations to keep coming in. And they continue exercising power over entire industries and fields, which naturally summon the companies dealing in them to try to shape how that power is exercise.
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