This is the Kator Daily Podcast for Wednesday, June 5th, 2019.

I'm Caleb Brown.

The Supreme Court has opted not to hear a case that might have helped prevent certain

quasi-government entities from exercising heavy regulation over their

private sector competitors.

If that sounds like a conflict of interest to you, then you agree with Cato's Will

Yatman.

We spoke Monday.

The Supreme Court by not taking up this case effectively allows

for this precedent whereby Congress

can authorize self-interested regulators, can authorize for-profit

self-interested regulators, can authorize for-profit corporations

to regulate their competitors.

In this specific instance, it's Amtrak regulating, you know, freight rail, which actually owns the track that Amtrak is regulating jointly

with the Department of Transportation, but it's a big deal.

Amtrak is by statute for profit.

It's board of directors and its officers have a fiduciary responsibility

to maximize their profits.

Indeed, their officers get paid more. I mean they've got a

contingency payments, performance payments. So now they've got in essence of

veto power in negotiating regulations for their competitors with the federal government,

with the Department of Transportation.

...