At year end, we often take time to reflect. This year, let’s reflect on precisely what it means, when a U.S. federal agency is ‘captured’ by industry, so as to serve the industry instead of the larger Public. This Post will look more closely at FAA later, but for now, to help see how serious the regulatory capture problem is, let’s look at another failing U.S. federal agency: the Food and Drug Administration (FDA).
FDA, just like FAA, has many responsibilities. For example, they are charged by Congress to regulate pharmaceutical companies. Additionally, Congress has funded FDA with the intent that they will be effective, working to protect public health from dangerous new drugs. One of those drugs, released two decades ago, is the addictive opioid, OxyContin. An online search reveals a jaw-dropping epidemic of addictions – and fatalities; indeed, odds are very high that everyone reading this Post knows at least one person who has been impacted by opioid addiction. Also, and not insignificantly, a deeper online research shows the fact that representatives of both major political parties have aided and abetted this epidemic, while also obstructing reforms and failing to pass overdue corrective legislation.
So, how well has FDA done their job? If agency leaders actually view their job as ‘serving customers’ such as the pharmaceutical industry, well, they’ve done a fantastic job. But, if any of us objectively assesses FDA performance from the perspective of serving the larger Public and actually protecting health, well, FDA is a total failure.
Patrick Radden Keefe recently wrote an article in The New Yorker, The Family That Built an Empire of Pain (click here to view the source article online; click here to view an archived and annotated version of the same article). Below is an excerpt that summarizes how Oxycontin legal actions are evolving; this particular excerpt primarily quotes Mike Moore, a former Mississippi State Attorney General:
… Ten states have filed suits, and private attorneys are working in partnership with dozens of cities and counties to bring others. Many public officials are furious at the makers of powerful painkillers. Prescriptions are expensive, and taxpayers often foot the bill, through programs like Medicaid. Then, as the ruinous consequences of opioid addiction take hold, the public must pay again—this time for emergency services, addiction treatment, and the like. Moore feels that the Sackler family, as the initial author and a prime beneficiary of the epidemic, should be publicly shamed. “I don’t call it Purdue. I call it the Sackler Company,” he said. “They are the main culprit. They duped the F.D.A., saying it lasted twelve hours. They lied about the addictive properties. And they did all this to grow the opioid market, to make it O.K. to jump in the water. Then some of these other companies, they saw that the water was warm, and they said, ‘O.K., we can jump in, too.’ ” There may be significant legal distinctions between a tobacco company and an opioid producer, but to Moore the ethical parallel is unmistakable: “They’re both profiting by killing people.” …
FAA as Faux-Regulator
So, how does studying this opioid epidemic, and Mr. Keefe’s article, help us to better understand FAA’s failure? Simply by showing a near-perfect analogy for the many signs of regulatory capture. Here is a short list of discernible failure patterns, the ‘symptoms’ of regulatory capture:
- Industry becomes the primary customer. For FAA, nothing shows this failure as starkly as the whistleblower hearings held on 4/3/2008.
- Money trumps health and environment; the faux-regulator enables industry to advance corporate profits, by assisting in expansions and system redesigns that invariably bear an enormous cost on environment, health, and local (usually residential) quality of life.
- Consequences of failures are eventually lethal. FDA failures fuel a rise in addictions and overdoses; FAA failures sustain sleep-deprivation that cause most of today’s multi-fatal commercial accidents, such as Colgan-Buffalo, Comair-Lexington, and UPS-Birmingham.
- Consequences of FAA failures also extend to the corruption of a culture that we are repeatedly and fraudulently told is ‘all about safety’, when the full record shows it is anything but. For example, the agency’s use of ATSAP to hide ATC safety data from the general public; the agency’s inability to see the enormous impacts imposed by NextGen changes and hub expansions; the agency’s wanton denial of obvious performance failures (such as the controller error at Santa Monica, or the rash of near-collisions at San Francisco); and of course the war against whistleblowers (those rare few inside FAA, who choose to speak up to correct the cultural failures, only to suffer retaliation).
- Key personnel within the faux-regulator end up serving only industry, often via a revolving door. In the Oxycontin story, the key FDA regulator was earning his federal pay and building his eventual federal pension when he signed off on the fraudulent Oxycontin marketing plan; just two years later, he worked for Purdue! The same pattern happens repeatedly at FAA, all the way to the FAA Administrator position (e.g., when Marion Blakey retired, she immediately became head of a major aviation lobby firm).
- The legal system becomes a third-party tool, used to maximize corporate advantage, an additional ‘enabler’. Both industry players and faux-regulator officials posture around threats of legal actions by industry, using this pattern as a hammer to force changes that accommodate industry, at the expense of the larger Public.
- To protect industry greed, and to ensure the legal system will enable these failures to persist, a heavy budget is allocated to lawyers who self-enrich with what is effectively a ‘license to lie and deceive’. Not just industry-paid lawyers, but also agency lawyers, paid for by the people.
- If and when manipulation of the legal system appears likely to fail, especially if the case is headed for trial, a ‘settlement’ suddenly appears. ALWAYS, this last-ditch legal maneuver protects both industry and faux-regulator from any accountability, by sealing records that were about to become a part of the public record, records that would among other things reveal how badly agency officials have failed. And, routinely, the so-called ‘settlement’ will include language that shuts out third parties (such as actual communities, or victim families) from future legal action.
Can This be Fixed?
Yes, it’s all fixable. And really not that difficult to do, so long as people demand performance from both agency and elected officials. The first step, though, is obvious: we have to accept that FAA, FDA and other agencies are broken, serving as faux-regulators, enabling industry players to evolve in ways that are truly destroying homes and people. Perhaps with a new year, we can get to work?