Government Regulation on Industry

A recent Harris Poll showed a national sample of 2,271 adults in the USA a list of 15 industries and asked them which ones should be more regulated, and which should be less regulated. Four industries were mentioned by more than fifty percent of those surveyed as needing more regulation, and the top three are all in the health care industry - managed care (60%), health insurance (59%) and pharmaceuticals (57%). The only other industry to be mentioned by more than fifty percent is the oil industry (52%).

Other industries where relatively large numbers favor more regulation are tobacco (44%), life insurance (35%), hospitals (35%), airlines (31%) and telephone companies (30%).

A majority (57%) does not believe that any of the fifteen industries should be regulated less than they are now, and few people mentioned any one industry. The industries mentioned most often as requiring less regulation are computer software companies (18%), computer hardware companies (17%) and supermarkets (17%).

While no industries were mentioned by majorities as being generally honest and trustworthy ('so that you would normally believe a statement by a company in that industry'), results varied widely among the different industries. At the top end, relatively large numbers trust supermarkets (40%), banks (35%), hospitals (34%), computer hardware companies (27%), packaged food companies (23%), and computer software companies (22%).

On the other hand, only very few people believe that tobacco companies (3%), managed care companies (4%), oil companies (4%), and health insurance companies (7%) are generally honest and trustworthy.

There is, clearly, a strong correlation between trust and the need for regulation. While there are some exceptions, the lower the level of trust, the greater the perceived need for regulation. Industries that want to avoid onerous regulation need to work hard at earning the public's trust.

According to Dr. Robert Blendon of Harvard, a leading academic authority on public opinion and health care, 'Prior research suggests that Congress and state legislatures pay a lot of attention to high levels of public concern about the behavior of specific industries. When the nation's focus on the Iraq war and terrorism becomes less riveting, we are likely to see legislatures respond to these poll findings with more oversight and regulatory proposals aimed at the health plan and pharmaceutical industries. Also, if gasoline prices do not fall soon, oil companies will find themselves in the same spotlight.'

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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