The regulatory capture conversation from the likes of pmarca is always about advocating reduction of regulation because otherwise the regulator starts working in favor of the big guys against the little guys. But to me that is the wrong way to look at regulatory capture. The antiregulation politicians are the ones that tend to put big business lobbyists in charge of regulation. We need good regulation, not less. Good regulation that evens the competitive playing field and protects exploitation of externalities. without regulation the bug guys lock in the rents with no space for competition. We need good regulation. But you don't vote for the antiregulation guy to get good regulation, he's trying to destroy regulation not improve it. Less government is a red herring, we need better government.