Regulatory capture in government happens because the people who are most qualified to supervise and regulate an industry oftentimes are or have been the leaders of the industry.

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Regulatory capture occurs when regulators, who are supposed to act in the public interest, are influenced or controlled by the industry they are regulating. This often happens because the individuals who have the most expertise and experience in the industry, and thus are seen as the most qualified to regulate it, are current or former industry leaders. Their close ties to the industry can lead to decisions that favor industry interests over public interest.

Regulatory Capture in Government Happens Because the People Who Are