The Sunday New York Times had an odd story regarding the industries and their efforts to create, rather than dismantle, new federal regulations.
Businesses which had once seen their bottom line enhanced by fewer regulations now see four reasons why they now protect it.
1--they are now competing with products from foreign countries which are under priced because they do not meet the same health, safety and environmental standards.
2--doing so may protect them in liability lawsuits.
3--and it may allow them to avoid potentially tougher regulations by states.
4--they seem concerned that Democrats may soon expand their power and also pass tougher regulations.
The story contains a graphic highlighting 14 industries and the efforts within each. Here are a few:
Automobiles: The Alliance of Automobile Manufacturers are pushing for increases in fuel efficiency
Cigarettes: The Altria Group is willing to allow the FDA to regulate tobacco products as drugs.
Fireworks: The American Fireworks Standards Laboratory wants mandatory testing to ensure that fireworks explode only as intended.
Mortgages: The Mortgage Bankers Association want to curtail predatory mortgage lending.
Toys: The Toy Industry Association wants to mandate tests on products before they go to market.
All are concessions, but are tuned to shifts in the political climate and public opinion. We should recall that the New Deal policies, as unpopular as they may have been to businesses, were argued to have helped save capitalism by saving it from its excesses. In addition, many regulatory agencies, like the Federal Communications Commission, were originally established by the request of the businesses they regulated.
What this tells us is that federal agencies can often work to the benefit of the regulated industries. This idea is the backbone of the concept of the iron triangle.
