Whenever Congress wants to make new rules, the various industry associations get in his arms, and they immediately start lobbing all the congressmen and senators to allow industries of self-control. The industry organizations that have the power structure, argue that they can regulate their industry best because they know the ins and outs, and regulators can not possibly manage the company in the industry because they do not understand. But this is probably true, I’d like to look at the issue in a deeper context.
First, absolute power corrupts absolutely. General industry associations have members that are tied to specific companies, and the companies use the Association as a means of controlling the industry. If industry is allowed to self-control, what they want to do is immediately above rules all newcomers with all new disruptive technology, which could result in the inability to come to compete; and, since they have the support of regulators, they used Association lawyers to send information to government regulators to file a lawsuit against the company rivals.
This means new business is fast moving in their industry can be stopped, and reduced so that the old way to continue stifling new competition. One has to ask how this could possibly be good for consumers. This is one reason why the industry can not self-control, because they can not keep moral integrity, and therefore can not be trusted because they are participating in their power base.
Similarly, we can not trust the government to control the United States government is too infiltrated by lobbyists in the same sectors that run organizations, and there is power in numbers and a lot of money in political contributions from PACs. Then there is the case of a rogue player in the industry association that has the right political connections, they can get away with murder because the company closer to them.
Maybe you’re starting to see the problem with self-regulation, and the problem with the incestuous relationship between lobbyists and politicians; of course that’s what Adam Smith warned us about and it gets in the philosophy of capitalism itself. I hope you will please consider this.