Every time we turn around, our government regulators are explaining to us what a great job they are doing, holding press conferences, and sending out press releases to over 18,000 different media outlets. Still, I would submit to you that America’s regulatory agencies aren’t nearly as grandiose, ethical, and fair as they would have you believe. In fact, I’d go so far as to say that they operate under a complete sense of false authority. Of course, you’d never know that by the way they talk, or how they promise they are protecting the American people. Okay so let’s discuss this shall we?
The reality is that a regulatory agency assumes that their target is guilty before they find out if anything is actually wrong. They might get a tip from a whistleblower, or a complaint from a consumer, more often than not a complaint comes in from a competitor. Sometimes that complaint doesn’t even come in to the regulatory agency directly, but rather from a politician who has just accepted a huge campaign contribution from a lobbyist to start poking around and asking questions, or asking regulatory agencies to open an investigation.
The regulatory agencies know that they must listen to the politicians because these are the people who vote each year on their annual budget. If they don’t keep the politicians happy in Congress, they won’t get the government funding money they need to grow their agencies so they can get bigger and stronger, and supposedly due more good to protect the consumer, and the American people. Therefore they open an investigation, and they start investigating and snooping around, and they keep working at it until they find something.
If they can’t find anything wrong for whatever it was that they were originally looking for, they start looking for something else. Basically, this is what is known as a; witch hunt, which is exactly what it is. Then if they find something small, they ask the company to settle, and the company usually does because it costs a huge amount of money in lawyer fees to fight these cases and it takes forever, meanwhile a company’s reputation is drug the mud, which hurts business. Meanwhile, the competitor that got the investigation going in the first place uses the advantage of this disruption to gain market share.
In other cases, a consumer or whistleblower is trying to get revenge on a company. The SEC once did a study that noted that 75% of all of the complaints made by the investing public were false. Nevertheless, the SEC, and many other regulatory agencies often solicit complaints on their websites. They then use these statistics to go to Congress and say; “we had 12,000 complaints last year, so we need more money to investigate them.”
It’s just amazing the false authority of America’s regulatory agencies, and I think if you study it, you’d agree that it is absolutely mind-boggling. Please consider all this and think on it.