Well, it's a combination of things, and this will lead into a future post about what regulations are, and why/how they come about.
When people do NOT self regulate, when they can't make choices on their own, someone with the interest and power to control them steps up.
http://redalertpolitics.com/2013/05/29/new-jersey-town-regulates-baggy-pants/
Now, I have no 'butt'. Pants do not stay up for me without cinching the belt down until I nearly cut off blood flow. However, my butt doesn't hang out. To some, that's a style. I don't understand it, and I think it makes people look like fools.
However, I would hazard a guess that we have slightly bigger things to worry about than sagging pants. Like sagging consumer confidence, sagging monetary value, sagging morals.