Dr. Martin Hash Podcast

Economist Bruce Yandle identified the Baptist & Bootleggers theory of government regulations; it's the combination of self-righteous, highly motivated sanctimonious do-gooders who want control over everyone else's lives, in a blind partnership with the smugglers and underworld interests that benefit by violating new restrictions. There's also the shadowy for-profit interests hiding behind public-interest groups to fund deceptive legislation intended to reduce competition, then charge higher prices than it costs them to comply. Unfortunately, many regulations are the demon spawn of just such alliances; everyday examples include the Clean Air Act, Pure Food and Drug Act, NAFTA, and the tobacco settlement, among many others over the past three decades.

How do we stop this nefarious practice? First, business should not be able to contribute to campaigns. This seems like a no-brainer but somehow has been compromised at the Supreme Court level. Second, forbid lobbyists of any kind; how can a normal human being just trying to do their job be expected to remain objective under a barrage of temptation, bullying, and expert cajoling. Third and most important, retired regulators should be barred from benefiting from the industry they were regulating. These three suggestions won't stop Bootleggers from cynically supporting the Baptists but it will show that we know they're doing it.