Thomas Frank: Obama and 'Regulatory Capture'

It's time to take the quality of our watchdogs seriously.

By THOMAS FRANK

The reason why those who see economic regulations as akin to tyranny often win policy debates is because they have a fiery argument with visceral appeal. Those who try to sell the virtues of the supervisory state tend to favor the passive voice. They don't do fire. They do law review.

The situation ought to be the reverse today. We have just come through the most wrenching financial disaster in decades, brought about in no small part by either the absence of federal regulation or the amazing indifference of the regulators.

This is the moment for a ringing reclamation of the regulatory project. President Barack Obama is clearly the sort of man who could do it. But in a white paper his administration released on the subject last week, the bureaucratic mindset prevails.