Monday, October 1, 2012

Government regulation under President Obama

Administrative agencies are the fourth branch of government, although they're not mentioned in the Constitution.  Ever heard of them?  (Stick with me here -- this isn't as dull as it sounds.)

I'm referring to agencies like the Environmental Protection Agency and the Consumer Products Safety Commission that wield tremendous power with limited external controls.  Yes, they're chartered by Acts of Congress and are subject to varying degrees of Congressional and executive oversight, but they operate largely under the radar.  Much of what these agencies do is to create and enforce regulations.  Regulations are effectively federal laws that don't have to be expressly passed by Congress or signed by the President.

Regulations have been commonplace for many decades, but President Obama really loves them:



Our government massively regulates.  The document that contains the ongoing record of regulations issued by all the Federal government's administrative agencies (the Federal Register) exceeded 80,000 pages in 2010 alone.  But the length of the regulations isn't nearly as important as the burden they impose on society.

For us, many regulations are merely day-to-day nuisances concerning everything from the light bulbs we buy to the cars we drive to limits on the amount of water that can flow through our shower head (or toilet).  But they can also have the harmful effect of causing a business to lay off employees, raise its prices, or shut down altogether.

For example, regulations aren't merely a nuisance to the Mississippi woman who was sentenced to prison for moving dirt on her land (thanks to a violation of an agency enforcing the Clean Water Act).  They weren't merely a nuisance to Gibson Guitars, which was raided by Justice Department for obtaining imported wood in alleged violation of an environment regulation.  And they aren't a nuisance to the makers of Buckyballs (I love them!), which is at war with the Consumer Products Safety Commission to avoid being shut down.

Many others can say the same thing.





Regulations don't just harm businesses, but people too.  Some even affect poor people disproportionately:



Of course, regulations do inspire some snazzy YouTube videos by those that they harm:



Some regulations are necessary.  But many regulations should be done away with.  And all regulations must be approached very cautiously. 

Unfortunately, President Obama is comfortable with imposing regulations that may bankrupt even an entire industry, like domestic coal.



Here are some concluding thoughts from the late, great economist Milton Friedman.



To verify the facts asserted on this page, see:

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