Monthly Archives: November 2018

Official Disdain for Commerce

Most cultures have held trade and commerce in low regard. This is true in nearly all times and places, and whether people are rich or poor, religious or secular, and cuts across political beliefs. Governments don’t much like the merchant class either, even though this disdain is biting the hand that feeds. James C. Scott provides an example from ancient China on p. 131 of his thought-provoking 2017 book Against the Grain: A Deep History of the Earliest States:

One reason for the official distrust and stigmatization of the merchant class in China was the simple fact that its wealth, unlike that of the rice planter, was illegible, concealable, and fugitive. One might tax a market, or collect tolls on a road or river junction where goods and transactions were more transparent, but taxing merchants was a tax collector’s nightmare.

This Week in Ridiculous Regulations

Regulators were relatively quiet during the week before the midterm election, though CEI wasn’t, with our colleague Ted Frank arguing a case before the Supreme Court on class action legal abuses. New regulations from the last week range from farm mortgages to military acquisition mentors.

On to the data:

  • Last week, 68 new final regulations were published in the Federal Register, after 79 the previous week.
  • That’s the equivalent of a new regulation every two hours and 28 minutes.
  • Federal agencies have issued 2,782 final regulations in 2018. At that pace, there will be 3,344 new final regulations. Last year’s total was 3,236 regulations.
  • Last week, 1,066 new pages were added to the Federal Register, after 1,349 pages the previous week.
  • The 2018 Federal Register totals 54,227 pages. It is on pace for 65,167 pages. The all-time record adjusted page count (which subtracts skips, jumps, and blank pages) is 96,994, set in 2016.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Five such rules have been published this year, none in the last week.
  • The running compliance cost tally for 2018’s economically significant regulations is a net savings ranging from $348.9 million to $560.9 million.
  • Agencies have published 90 final rules meeting the broader definition of “significant” so far this year.
  • So far in 2018, 527 new rules affect small businesses; 22 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

Basics of Antitrust Regulation

From p. 69 of Richard Posner’s Antitrust Law, 2nd Ed. (2001):

There is no sound basis in economic theory for thinking that if there are just a few major sellers in a market, competition will disappear automatically.

It’s an empirical question, not an a priori one. Too many analysts and regulators forget that.

 

October Brought 250,000 New Jobs, Despite Bad Trade Restrictions

This press statement is cross-posted from CEI.org. See the original here.

The American economy added 250,000 jobs in October, the U.S. Labor Department announced today. The unemployment rate was meanwhile unchanged from last month, at 3.7 percent – a 50-year low. That’s good news for the economy – it shows that even President Trump’s costly trade tariffs aren’t eclipsing growth, says Ryan Young, CEI fellow:

“Politicians don’t actually run the economy, and hence don’t have that much influence over employment rates or the business cycle. The fundamentals of the U.S. economy are strong, and it is showing in the 250,000 new jobs created in October. In a further show of strength, even with President Trump’s trade policies slowing economic growth by as much as 1.8 percentage points, the economy still grew by 3.5 percent last quarter.  The President’s supporters and critics alike should be delighted at today’s jobs report, and should work together on a range of beneficial policies, from lowering trade barriers to stronger central bank independence to reining in executive branch regulatory excesses.”

Young co-authored a recent report making the case for free trade, Traders of the Lost Ark

Rediscovering a Moral and Economic Case for Free Trade.