Monthly Archives: April 2013

CEI’s Battered Business Bureau: The Week in Regulation

racine drawbridge
This week in the world of regulation:

  • Last week, 67 new final regulations were published in the Federal Register. This is up from 56 new final rules the previous week.
  • That’s the equivalent of a new regulation every two hours and thirty minutes — 24 hours a day, seven days a week.
  • All in all, 949 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 3,396 new final rules.
  • Last week, 1,368 new pages were added to the 2013 Federal Register, for a total of 22,116 pages.
  • At its current pace, the 2013 Federal Register will run 77,874 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. No such rules were published last week, for a total of 11 so far in 2013.
  • The total estimated compliance costs of this year’s economically significant regulations ranges from $2.632 billion to $4.910 billion.
  • So far, 77 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 166 final rules affect small business; 20 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

Not the Strongest Argument for Income Equality

From Gordon Tullock’s 1986 essay “Industrial Organization and Rent Seeking in Dictatorships,” in particular on p.124 of Vol. 5 of his collected works, The Rent-Seeking Society (footnote omitted):

I have currently been reading a series of articles in The Washington Post in which a communist official in Vietnam is quoted as saying that their society is stabler than other South East Asian countries’ because although it is extremely poor, the poverty is evenly spread. The reporter clearly thought this was a significant argument.

Odd though this thinking is, it is also common. I humbly submit that it is more humane to be concerned with how to better the lot of the poor, rather than the mathematical ratio between the poor and the wealthy. This is literally the difference between caring about people versus numbers.

Slow News Day

Washington Post: Rep. Steve Cohen to hold news conference to discuss Cyndi Lauper tweets

CEI Podcast for April 11, 2013: Reining in Unfunded Mandates

Dollars funnel.
Have a listen here.

Vice President for Policy Wayne Crews warns that the higher the deficit goes, the more tempted the federal government is to resort to unfunded mandates, which don’t appear on the federal budget. He also discusses a reform bill from Rep. Virginia Foxx that would increase transparency and oversight over unfunded mandates, and suggests further reforms.

Time to Rein in Unfunded Mandates

In today’s Investor’s Business Daily, Wayne Crews and I point out that the higher deficits go, the more tempting it becomes for Congress to resort to unfunded mandates:

For example,instead of funding a new federal job training program from federal coffers, Congress could mandate that all firms above a certain size provide such training at their own expense.

The first option appears on the federal budget; the second does not. For politicians, it’s the perfect scheme. The government can spend — or, rather, force others to spend — as much as it wants without adding to the deficit.

Fortunately, a bill recently introduced by Rep. Virginia Foxx would help prevent this problem:

She has just re-introduced the Unfunded Mandates Information and Transparency Act to improve UMRA. It would require all agencies, not just some of them, to conduct UMRA analysis. And it would require these for all new final rules, not just some.

Foxx’s proposed reform would not curtail Congress’ power to regulate; it only requires increased disclosure as to how that power is exercised.

More needs to be done to end the abuse of unfunded mandates. But first, we need more transparency so the public can find out just how bad the problem is.

Read the whole thing here.

“The coming frenzy of sex and death will last up to six weeks.”

So says the Washington Post, warning of an upcoming brood of 17-year cicadas that will swarm the region once the ground temperature reaches 64 degrees — which could happen as soon as late April. While this brood won’t be of quite the same magnitude as the one that gave me an unnerving welcome to DC back in 2004, we are still in for a harrowing experience.

The Transitional Gains Trap

Once a government policy is in place, it is almost impossible to repeal. As Gordon Tullock points out, this is especially true when a policy is the result of rent-seeking — a private company using government to secure ill-gotten gains. Tullock explains this “transitional gains trap” on p. 68 in volume 5 of his collected works, The Rent-Seeking Society:

The problem posed by the transitional gains trap is the ratchetlike nature of rent seeking. Once a rent has been successfully sought out through government lobbying, it is very difficult to remove even after it has ceased to produce positive benefits for its rent-seeking beneficiaries. Its elimination almost always implies losses for those who now exercise the privilege. To avoid such losses, they will rent-seek yet again to retain the privileges. Politicians are rightly reluctant to inflict direct losses on specific sections of the electorate — inevitably a losing strategy.

Once in place, always in place. Inertia wins.

CEI’s Battered Business Bureau: The Week In Regulation

school-lunch
This week in the world of regulation:

  • Last week, 56 new final regulations were published in the Federal Register. This is down from 100 new final rules the previous week.
  • That’s the equivalent of a new regulation every three hours — 24 hours a day, seven days a week.
  • All in all, 882 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 3,389 new final rules.
  • Last week, 1,386 new pages were added to the 2013 Federal Register, for a total of 19,362 pages.
  • At its current pace, the 2013 Federal Register will run 78,591 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. One such rule was published last week, for a total of 11 so far in 2013.
  • The total estimated compliance costs of this year’s economically significant regulations ranges from $2.632 billion to $4.910 billion.
  • So far, 72 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 158 final rules affect small business; 20 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

Regulation Roundup

bingo

CEI Podcast for April 4, 2013: Reining in the CFAA

wargames-hacker
Have a listen here.

Congress is mulling an update to the Computer Fraud and Abuse Act (CFAA) of 1984. Under the CFAA, it is currently a federal crime to enter an incorrect age on your Facebook profile or an incorrect weight on a dating website profile. Associate Director of Technology Studies Ryan Radia suggests that the CFAA should be reined in, instead of expanded, as a draft currently circulating around Capitol Hill proposes.