Comment by jsnell
5 days ago
That is not actually a typical playbook. Normal businesses do not want to be regulated, and will fight it tooth and nail. So regulation happens when bad things happen, the public wants change, and the businesses can't fight it or set favorable terms. (At most they can minimize the badness of the terms). Regulatory capture happens much later, and slowly. It's not where you start at.
> That is not actually a typical playbook. Normal businesses do not want to be regulated, and will fight it tooth and nail.
Sure. If you exclude, for example, the entire automotive industry, the entire telecom industry, the entire airline industry, the entire energy industry, and the entire healthcare industry from the category of "normal businesses" then you can perhaps make an argument that most "normal businesses" do not want to be regulated.
> Regulatory capture happens much later, and slowly.
Regulatory capture often happens quite early, especially when new technologies emerge, and companies that are successful early on aim to consolidate their hold on the market. This happened with the telephone industry around the turn of the 20th century, the broadcasting industry starting in the 1920s, etc. Regulation always tends toward market consolidation, so the people who are aiming for market consolidation tend to advocate for it. And sometimes the most effective advocacy is pretending to oppose it.