"The Chicago crowd did update the idea to the modern phrase, "regulatory capture.""
Regulatory capture is a rhetorical trap. There is bad regulation and good regulation, but the idea that regulators inherently serve regulated industries is false. It was empirically false when George Stigler wrote his work on this in the 1960s and it's false today. However, we shouldn't be surprised when regulation designed to foster market power does so.
Well, yes. It's in any decent economics text:
https://www.economicshelp.org/wp-content/uploads/2008/02/monopolistic-competition-sr.png
This is somewhat overstated, but it gets the essential point across:
https://aeon.co/essays/we-should-look-closely-at-what-adam-smith-actually-believed
The Chicago crowd did update the idea to the modern phrase, "regulatory capture."
"The Chicago crowd did update the idea to the modern phrase, "regulatory capture.""
Regulatory capture is a rhetorical trap. There is bad regulation and good regulation, but the idea that regulators inherently serve regulated industries is false. It was empirically false when George Stigler wrote his work on this in the 1960s and it's false today. However, we shouldn't be surprised when regulation designed to foster market power does so.
In defense of Dr. Fauci
Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/lex-fridman-podcast/id1434243584?i=1000540919852
#238 – Francis Collins: National Institutes of Health (NIH)
Lex Fridman Podcast