How do you reform or abolish a gov't regulatory agency?

[hummingbird]

I have seen repeated assertions that self-regulation does not work.  If this means no oversight whatsoever and expecting people to just do the right thing, then it is certainly true.  It is more especially true when huge sums of money are involved such as in banking.

However, quite apart from being an indictment against the market, I have argued that it is more of an indictment against centralized government regulation.  Most people assume that government regulatory agencies are on the task of regulating market behavior (most especially over banks).  So when those agencies leave important behavior without scrutiny, the failure is upon them.  Blaming self-regulation is like blaming the fox for eating the chickens when you knew you had left him to watch the hen house.

This question is intent upon probing the scope of solutions available to conducting effective regulation.  While regulation is typically considered only an activity for government, I introduce another option.  Private market watchdog groups could monitor the actions of market participants, publicize their businesses (both good and bad) and report them to the appropriate authorities when criminal fraud or other bad actions are discovered.

A 'best answer' would contrast how such agencies (potentially competing) might work compared to centralized government agencies.  Don't tell me your ideas for reforming government agencies.  For instance, one recent correspondent suggested that we need to close the "revolving door" between regulators and the regulated industries.  I certainly agree.  What are the mechanisms of doing this through the political system.  Tell me step by step.  Tell me what roadblocks you will encounter.

Next, a 'best answer' would comment on the corresponding process that would be required to reform market-based regulatory industries.  Note, don't imagine that I think that such industries would instantly lead to utopia.  I expect problems in human endeavors no matter how they are conducted.  I am trying to examine the incentives and mechanisms in the various methods that we employ to conduct society.  Since political means have been so widely accepted with what I believe are so poor results, I push especially on them.
For the benefit of Holy Cow! and anyone else thinking that this is a homework essay, I graduated from college about ten years ago.  This is not homework but is based upon my personal philosophical interest.
callenqhranch:

Best effort so far; so this is not to disparage your answer.  Go ahead and do what you just suggested.  If *just doing it* is impossible, then you have neglected some steps or roadblocks.

[federox]

Government programs and agencies are essentially impossible to get rid of once they are in place.  Their budgets only go up, never down.

[geoffrey]

It's almost impossible to happen. There is to much money and power involved once it has started.

[federox]

Execute traitors first, then give regulatory guidelines to be followed.

[federox]

First thing to do is vote everyone who is up for re-election out of office,(Democrat, Republican,Liberal, Conservative or Progressive, but especially the go along to get along types of personalities) they have betrayed the American People and trashed the Constitution...

Secondly: Vote for individuals who say what they mean, and meant what they say < look at the history of the opponents actions> look at the character of the individual running in opposition to any sitting Senator or Representative.

Thirdly: Congress must pass laws that say that no Lobbyist can be within a 1500 miles of Washington,D.C. while Congress is in Session.
Congressman and the White House seem to forget their duties are to protect the American people, not to enslave them to the whims of Party Dictates.

Fourthly: Any major legislation that affects more then 2/3 's of the Population must be ratified by vote of the populace.

Fifthly:  Regulatory Rules must be done by committee, and must be strictly enforced...SEC failed in it's duty to enforce the regulations...Congr ess turned a blind - eye to the regulatory abuse...and the lack of enforcement...

No non-profit organization may receive Taxpayer dollars without the consent of the Taxpayers....

[federox]

My preference for government regulation instead of private watchdog groups is rooted in my preference for democracy. If regulation is just left up to these private groups who are run top down, who's to say their motives will stay pure? Who's to say they won't jeopardize their journalistic integrity based on who's wetting their whistle? If these organizations doing the regulation are undemocratic and privately run, it's essentially the same thing as self regulation.

How to reform government regulation? The answer is not an easy one. It will take no less than a shaking up of our entire political system. Ultimately the responsibility lies with us, the working class. The ballot box is broken, the ruling class selects candidates most likely to defend their interests and we are left to pick between puppet A and puppet B, giving the gloss of democracy on a very undemocratic government. If the working class is disenfranchised then it is completely naive of us to expect our interests to be represented. If the ballot box is broken then its up to us to take to the streets with nonviolence, and we'd better do it quick before things get so bad that people's survival becomes jeopardized and they become left with no choice but to resort to violence.