The FAA's effectiveness was undermined by 'regulatory capture,' a phenomenon where the agency, tasked with both promoting aviation and ensuring safety, became too closely aligned with the industry it regulated. This led to a relaxed oversight approach, including allowing Boeing to self-certify the 737 MAX and its MCAS system, a decision that proved disastrously flawed.

Impact: High. The FAA's compromised oversight allowed critical safety issues to be overlooked, demonstrating how regulatory bodies can fail to protect the public when industry interests dominate.

In the source video, this keypoint occurs from 00:22:50 to 00:26:50.

Sources in support: Josh (Host), Chuck (Host)