Regulatory capture and rogue agencies

[oldfart]

While folks on the left and the right might use different examples, I think there might be an agreement that too many government agencies that businesses and the public have to deal with have developed their own inbred cultures which are often extremely dysfunctional. The one I deal with at work is the IRS. Suffice it to say I have plenty of stories that would curl anyone's toes.

Part of the problem is abuses and illegal activities, but more pernicious is the fact that many agencies have developed an ethos about what they do that is injurious to their mission, the general public, and the majority of the people they deal with for the benefit of the organization itself and for a few "stakeholders" who are too cozy for the public interest.

Here's a short list of what I consider the prime examples.

1. Internal Revenue Service--for a persistent adversarial "protect the revenue" attitude, poor taxpayer service, and an inbred self-protective culture.
2. Law enforcement agencies in general--for becoming increasingly militarized, self-protective, attitude that everyone is guilty, and prone to "rogue" operations clearly outside the law.
3. Criminal justice system--with 98% of cases disposed throgh pleas bargains, where is there any justice?
4. Commercial legal system--victory goes to the deepest legal pockets
5. Industry regulation--can we spell "capture"?
6. Intelligence community--Bigger than the rest of the government combined? Really?
7. Military contracting system--what makes cost plus obscene
8. Military justice--has to be seen to be believed

Just to add some perspective, these agencies each perform some functions well and other agencies seem to overall operate with less of these crippling disabilities (the Foreign Service, Agricultural Extension Service, Inspector-general system in most Departments, National Taxpayer Advocate, Congressional Budget Office, most statistical services like BLS, FRED, BEA, Census, CEA, and so forth).

In each agency the problem seems to have a common refrain: an internal culture to develop its own standards of behavior and protect its own. So here is my modest proposal to make the things incrementally better.

At a lower middle management level, technical expertise is important, but at managerial levels management skills which should be generic across agencies becomes more important. Why not have a management development program across civil service as opposed to one for each agency? Limit the time in any agency to ten years. Cross promote so that the next Assistant Commissioner comes from the Dept of Labor or the FAA. The people in the IRS will not be disadvantaged, their next promotion could be the SEC or Bureau of the Census. Good ideas would spread and insular attitudes would break down.

Expand, fully fund, and make the inspector general system more accountable to Congress.

Forbid government employees above a certain pay level (middle management with some policy-making responsibilities) involved in certain regulatory functions from accepting employment in the industries for a period of at least ten years.

What say you?

 

[Kimura]

Good write up.

What are the solutions?

1) Democracy basically end up with the state being captured by the influential.
2) Laissez-fare inevitably leads to monopoly capital.
3) Democracy becomes a joke without an educated and informed electorate.

I'm growing more cynical by the day.

 

[TakeAStepBack]

Remove government from all economic sectors except in contractual disputes or cases of fraud.

There job is to protect individual rights, hold them accountable and uphold the constitution. Not play economic central planner. What you refer to is simply an inevitable moral and ethical hazard of creating agencies like the IRS, FDA, EPA, etc...

 

[oldfart]

Good write up.

What are the solutions?

1) Democracy basically end up with the state being captured by the influential.
2) Laissez-fare inevitably leads to monopoly capital.
3) Democracy becomes a joke without an educated and informed electorate.

I'm growing more cynical by the day.

I try to not get into the "informed electorate" thing because it isn't going to happen. I also don't believe in global solutions. I'm just interested in nibbling at the edges, and the culture of the apparatchniki is one thing that can be changed.

I also believe that some things like income inequality and entrenched bureaucrats gety worse each year unless we do something to reverse the trend. This is what Jefferson was really getting at in his famous "bloodthirsty" quote!

 

[AmazonTania]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

 

[oldfart]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

Congress sits atop the American Constitutional system. It has the power of the purse and the power to impeach and remove from office members of the executive and judicial branches, as well as to expel members of the House and Senate. So ultimately Congress is accountable only to voters. No one else has authority to remove a Senator or Representative. In each national election, voters elect a Representative, and in at least two out of three a Senator. If we ask who put these bozos in charge, we did.

 

[AmazonTania]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

Congress sits atop the American Constitutional system. It has the power of the purse and the power to impeach and remove from office members of the executive and judicial branches, as well as to expel members of the House and Senate. So ultimately Congress is accountable only to voters. No one else has authority to remove a Senator or Representative. In each national election, voters elect a Representative, and in at least two out of three a Senator. If we ask who put these bozos in charge, we did.

Congress may be accountable to the voters, but not always. There is generally more finger pointing to go around then things go horribly wrong. Just as the crisis with GSE's Fannie and Freddie, and the Congressmen convinced that there was nothing wrong.

Could be that pointing out errors in the business model would have thwarted all of the progress made regarding American Home Ownership. Could be because the Chairman were Democrat. Who knows, but until Angels start governing, who is to know where the buck truly stops...

 

[Kimura]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

Congress sits atop the American Constitutional system. It has the power of the purse and the power to impeach and remove from office members of the executive and judicial branches, as well as to expel members of the House and Senate. So ultimately Congress is accountable only to voters. No one else has authority to remove a Senator or Representative. In each national election, voters elect a Representative, and in at least two out of three a Senator. If we ask who put these bozos in charge, we did.

I agree. However, if we're going to be honest, it's special interests which heavily influence the political process. Our members of Congress are the ultimate prostitutes.

 

[Rshermr]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

Congress sits atop the American Constitutional system. It has the power of the purse and the power to impeach and remove from office members of the executive and judicial branches, as well as to expel members of the House and Senate. So ultimately Congress is accountable only to voters. No one else has authority to remove a Senator or Representative. In each national election, voters elect a Representative, and in at least two out of three a Senator. If we ask who put these bozos in charge, we did.

I agree. However, if we're going to be honest, it's special interests which heavily influence the political process. Our members of Congress are the ultimate prostitutes.

For what it is worth, I agree completely. Both history and logic will point you to the ultimate problem when it comes to congress: MONEY IN POLITICS.
As long as we allow it, we will see more and more control of politics by the wealthy. Citizens United being a prime example. Few people in this world believe that is a reasonable idea. In fact, those I have talked to think we must be NUTS.
But, the repubs love it, and some of the dems love it. Tells you immediately who benefits.

Relative to gov agencies and growth of power and inbred culture, I believe that what has been said by Oldfart is true. I also believe it is less a gov vs private sector issue than a large organization issue. Anyone besides me notice the excesses of power in companies like IBM, etc??? Ain't monopoly power wonderful??

 

[TakeAStepBack]

As long as congress adn the executive have the abilityt o pass laws that favor businesses, you'll never remove money from politics. You have to remove government from the economy to solve the problem. If congress or the exec can not pass any laws that foster collusion and favoritism, lobbying them to do so is a waste of money. Money better spent on the business model to out-do the competition.

As long as the power of congress to regulate commerce (and a host of other sectors) they will be ripe for collusion.

Of course, a well informed public might make the proper choices to change the nature of who gets to make such rules and for whom they truly work for, but i think that day has long since passed by.

 

[oldfart]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

Congress sits atop the American Constitutional system. It has the power of the purse and the power to impeach and remove from office members of the executive and judicial branches, as well as to expel members of the House and Senate. So ultimately Congress is accountable only to voters. No one else has authority to remove a Senator or Representative. In each national election, voters elect a Representative, and in at least two out of three a Senator. If we ask who put these bozos in charge, we did.

Congress may be accountable to the voters, but not always. There is generally more finger pointing to go around then things go horribly wrong. Just as the crisis with GSE's Fannie and Freddie, and the Congressmen convinced that there was nothing wrong.

Could be that pointing out errors in the business model would have thwarted all of the progress made regarding American Home Ownership. Could be because the Chairman were Democrat. Who knows, but until Angels start governing, who is to know where the buck truly stops...

It's hard to avoid circular reasoning here. Congress may be non-responsive to the will of the voters, but who are they responsive to? It's hard to avoid the conclusion that Congress is responsive to people and groups that can provide either money or votes. That is essentially the subject matter of political science.

Put another way, my OP was intended to raise the subject of how to keep the bureaucrats from being TOO responsive to money and possible voting blocs. Like you, I have little faith that government (or industry) will ever be run by angels or geniuses. But maybe we can do something to cut down on the particularism that seems to infect some departments and agencies.

I'm curious. If you were on a panel to improve the agency-taxpayer interface at the IRS (and yes, such a panel exists!), what would you want to look at? I have my own list, but I am interested in what others experience and think.

 

[oldfart]

Well, who exactly is Congress accountable to while they make sure citizens are protected from the inspectors who have the power to regulate.

Congress sits atop the American Constitutional system. It has the power of the purse and the power to impeach and remove from office members of the executive and judicial branches, as well as to expel members of the House and Senate. So ultimately Congress is accountable only to voters. No one else has authority to remove a Senator or Representative. In each national election, voters elect a Representative, and in at least two out of three a Senator. If we ask who put these bozos in charge, we did.

I agree. However, if we're going to be honest, it's special interests which heavily influence the political process. Our members of Congress are the ultimate prostitutes.

I think you have just slandered the world's oldest profession.

 

[editec]

Good write up.

What are the solutions?

1) Democracy basically end up with the state being captured by the influential.
2) Laissez-fare inevitably leads to monopoly capital.
3) Democracy becomes a joke without an educated and informed electorate.

I'm growing more cynical by the day.

I so understand that feeling, Kimura.

My only modest disagreement is with number 3.

While I totally agree that democracy without and informed electorate cannot work well, I no longer think it matters if the electorate knows the democracy game is rigged.

Millions and millions of voters know that perfectly well but we still do not have viable alternative candidates to effect REAL change.

At some point the game became so rigged by the duelopoly (with invaluable help from the SCOTUS. I note) that reversing the trends that are making a joke of our nation and its democracy seem impossible.

Two fatal blows to our democracy were:

1. Giving corporations license by granting them status as citizens; and

2. Declaring money = free speech.


No true democracy can exist where CAPITAL can become a CITIZEN by incorporation.

 

[Rshermr]

Good write up.

What are the solutions?

1) Democracy basically end up with the state being captured by the influential.
2) Laissez-fare inevitably leads to monopoly capital.
3) Democracy becomes a joke without an educated and informed electorate.

I'm growing more cynical by the day.

I so understand that feeling, Kimura.

My only modest disagreement is with number 3.

While I totally agree that democracy without and informed electorate cannot work well, I no longer think it matters if the electorate knows the democracy game is rigged.

Millions and millions of voters know that perfectly well but we still do not have viable alternative candidates to effect REAL change.

At some point the game became so rigged by the duelopoly (with invaluable help from the SCOTUS. I note) that reversing the trends that are making a joke of our nation and its democracy seem impossible.

Two fatal blows to our democracy were:

1. Giving corporations license by granting them status as citizens; and

2. Declaring money = free speech.


No true democracy can exist where CAPITAL can become a CITIZEN by incorporation.

Absolutely!!
So we have a supreme court made up of politicians in robes. Who are loyal to the party that got them a lifetime position. And who have no code of conduct that would normally regulate legal activities. Nice system. And we wonder why anyone would be a skeptic???
I am a little surprised that a couple of cons have not jumped in to support Citizens United (which, in my opinion, is not supportable by a rational person).

 

[EdwardBaiamonte]

Citizens United (which, in my opinion, is not supportable by a rational person).

actually it was a free speech case wherein a group of people wanted to speak against Hillary Clinton. The court said free speech was still ok. Figures libturd would be opposed.

 

[Rshermr]

As predicted, a con tool DID jump in to support citizens united. Ed is so predictable.
Problem is, I can never figure out if ed is lying, knowingly. Or if he is just dumber than a post. Probably both.

 

[EdwardBaiamonte]

As predicted, a con tool DID jump in to support citizens united.

actually Ciizens United was a free speech case wherein a group of people wanted to speak against Hillary Clinton. The court said free speech was still ok. Figures liberals would be opposed.

 

[Rshermr]

Makes you wonder. Does anyone, anywhere, have this low of an ability to understand reality?? Ed, paid to post con dogma, does so. Simple to understand. But, DOES ANYONE ACTUALLY BELIEVE THE DRIVEL COMING OUT OF HIS MOUTH???