Monthly Archives: November 2020

Report on the Digital Economy

George Mason University’s Global Antitrust Institute has released a 1,361-page Report on the Digital Economy.

EU’s Antitrust Charges against Amazon at Odds with Reality

This is a press release originally posted at cei.org.

The European Commission today announced it was charging Amazon with antitrust violations, accusing the retailer of using data from third-party sellers to benefit its own retail offerings.

CEI senior fellow Ryan Young said:

“Whether intentionally or not, the EU’s antitrust case against Amazon is trade protectionism by another name, at a time when the global economy cannot afford it.

“It also falls for the relevant market fallacy. This is using fancy terminology to say that Amazon dominates an unrealistically narrow market. In this case, the EU argues that Amazon dominates ‘marketplace services’ and ‘online platforms.’ Amazon is, in fact, a low-margin retailer. And it has a roughly 1 percent global market share. It sells things in a variety of ways, and people can buy them in a variety of ways—or not, as they choose.

“Amazon has made retail more competitive. Amazon’s third-party seller services give smaller businesses access to a global market they did not previously have. Traditional large retailers, such as Walmart and Target in the U.S., have expanded their online options to compete against Amazon. So have grocery stores—which is important in the age of COVID. It is difficult to make an argument that these developments have harmed consumers or producers.”

Read more:

This Week in Ridiculous Regulations

The 2024 election season officially began on Wednesday. The 2020 Federal Register topped 70,000 pages right on election day, and is on pace to be the Trump era’s largest by more than 11,000 pages. The usual midnight rush that accompanies a change in power could push that number even higher. Meanwhile, regulatory agencies issued new regulations ranging from semichemical emissions to riding electric bikes in water.

On to the data:

  • Last week, 70 new final regulations were published in the Federal Register, after 55 the previous week.
  • That’s the equivalent of a new regulation every two hours and 24 minutes.
  • Federal agencies have issued 2,819 final regulations in 2020. At that pace, there will be 3,263 new final regulations. Last year’s total was 2,964 regulations.
  • There were 54 proposed regulations in the Federal Register last week, for a total of 1,874 on the year. At that pace, there will be 2,169 new proposed regulations in 2020. Last year’s total was 2,169 proposed regulations.
  • Last week, agencies published 469 notices, for a total of 19,233 in 2020. At that pace, there will be 22,260 new notices this year. Last year’s total was 21,804.
  • Last week, 2,103 new pages were added to the Federal Register, after 1,486 pages the previous week.
  • The 2020 Federal Register totals 71,211 pages. It is on pace for 82,421 pages. The 2019 total was 70,938 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. Four such rules have been published this year. Four such rules were published in 2019.
  • The running cost tally for 2020’s economically significant regulations ranges from net savings of between $1.19 billion and $4.19 billion. 2019’s total ranges from net savings of $350 million to $650 million, mostly from estimated savings on federal spending. The exact number depends on discount rates and other assumptions.
  • Agencies have published 63 final rules meeting the broader definition of “significant” so far this year. 2019’s total was 66 significant final rules.
  • So far in 2020, 561 new rules affect small businesses; 24 of them are classified as significant. 2019’s totals were 501 rules affecting small businesses, with 22 of them significant.

Highlights from last week’s new regulations:

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

The 2020 Election Actually Had Some Free-Market Victories

Neither presidential candidate has much interest in limited government. But over at National Review, I look at some neglected down-ballot victories from the 2020 election. A divided Congress will prevent one party from running everything, regardless of who wins the White House. There were also several state-level victories across the country. 

California voters partially undid the AB5 gig-worker law that made unemployment even worse during the pandemic. They also voted against an expansion of rent control, which is one reason California’s housing prices are so high.

Not that legislators will listen, but Illinois voters sent them a message to address the state’s pension crisis by cutting spending rather than raising taxes:

The Illinois legislature had already passed a separate tax hike bill, conditional on voters approving the amendment. Voters disapproved by a 55-45 margin, and taxes will remain as they are.

Voters in Oregon and several other states also continued to deescalate the drug war:

In order for people to respect the law, they have to be able to respect it. That was a major cultural cost of alcohol prohibition in the 1920s, and of the drug war today. Drug legalization allows law enforcement to focus on real crimes and ease an avoidable source of antagonism between police officers and the communities they serve—especially in minority areas where drug laws are disproportionately enforced.

Washington state voters registered disapproval of a plastic bag tax. This is a victory for my colleague Angela Logomasini, who has written about the issue here and here.

A lot went wrong in the 2020 election, as is true every year. But some things also went right. Now let’s build on those victories and create some new ones.

Read the whole thing here. Ideas for the next free-market victories are at neverneeded.cei.org.

On the Radio: The Google Antitrust Case

This Sunday, November 8, I’ll be on the Bob Zadek Show to talk about the Google antitrust case. I’ll be on for the whole hour, starting at 8:00 AM PT/11:00 ET.

Bob’s website is here. If audio is put online afterwards, I’ll post a link.

Regulatory Relief Needs Better Transparency

Getting rid of #NeverNeeded regulations is one of the most important policy responses to the COVID-19 pandemic. The short-term benefits are obvious. But the long-term benefits are arguably more important, for both long-term growth and resilience against the next crisis. My colleague Alex Reinauer and I have a short piece over at RealClearPolicy looking at just how much deregulation has happened in the wake of COVID. It’s actually very difficult to tell how much there is, due to a lack of transparency:

Transparency is important, especially during a crisis. Agencies need to do more than look like they are “doing something” in response to COVID. Congress and the president need to ensure agencies follow existing transparency requirements. Additional safeguards such as annual agency regulatory report cards will keep agencies more honest during this and future crises. Then policy makers and the public can judge for themselves what agencies are faring, and how they can do it better. It’s a lot more cost effective than another $1 trillion “stimulus.”

These transparency problems are a system-level problem that needs to be addressed. Agencies need to follow existing transparency guidelines. People need to know what they are doing, how much it costs, and what agencies are doing to improve their work. As we often say at CEI, institutions matter. It is not enough to reform this or that rule. The larger institutions that create those rules also need to be reformed.

Read the whole piece here. For more reform ideas, visit neverneeded.cei.org.

James Madison on Why Politics Ruins Everything

Politics has a way of ruining everything. Even kind and intelligent people go through an instant metamorphosis when the conversation changes to politics. Their body language tenses up. Their word choices include more intensifiers. They say horrible things about strangers they would never say in a different context. Their mental processes change to in-group-vs.-out-group mode, as though we were hunter-gatherers again.

And this sudden intensity can turn on and off almost instantly, like a light switch, as the conversation veers from topic to topic. It’s certainly unpleasant, and possibly unhealthy.

This very human foible may be what inspired James Madison to write in Federalist No. 55, “Had every Athenian citizen been a Socrates, every Athenian assembly would still have been a mob.”

The median voter is not a wise person, at least about politics. But even if he was, the effects partisan politics has on the brain can shut down rational thought in even the best and brightest.

Happy Election Day, everyone.

This Week in Ridiculous Regulations

The Los Angeles Dodgers won baseball’s World Series. GDPnumbers bounced back in a big way, though the economy is still smaller than a year ago. The presidential election is tomorrow, and all those infernal campaign ads will finally, mercifully, stop. The Senate is out of session until November 9. Meanwhile, regulatory agencies issued new regulations ranging from egg product inspections to importing retail meth ingredients.

On to the data:

  • Last week, 55 new final regulations were published in the Federal Register, after 62 the previous week.
  • That’s the equivalent of a new regulation every three hours and three minutes.
  • Federal agencies have issued 2,749 final regulations in 2020. At that pace, there will be 3,257 new final regulations. Last year’s total was 2,964 regulations.
  • There were 39 proposed regulations in the Federal Register last week, for a total of 1,820 on the year. At that pace, there will be 2,156 new proposed regulations in 2020. Last year’s total was 2,169 proposed regulations.
  • Last week, agencies published 474 notices, for a total of 18,764 in 2020. At that pace, there will be 22,232 new notices this year. Last year’s total was 21,804.
  • Last week, 1,486 new pages were added to the Federal Register, after 1,439 pages the previous week.
  • The 2020 Federal Register totals 69,118 pages. It is on pace for 81,894 pages. The 2019 total was 70,938 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. Four such rules have been published this year. Four such rules were published in 2019.
  • The running cost tally for 2020’s economically significant regulations ranges from net savings of between $1.19 billion and $4.19 billion. 2019’s total ranges from net savings of $350 million to $650 million, mostly from estimated savings on federal spending. The exact number depends on discount rates and other assumptions.
  • Agencies have published 63 final rules meeting the broader definition of “significant” so far this year. 2019’s total was 66 significant final rules.
  • So far in 2020, 542 new rules affect small businesses; 24 of them are classified as significant. 2019’s totals were 501 rules affecting small businesses, with 22 of them significant.

Highlights from last week’s new regulations:

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

Economics Has a Moment of Zen

Frank Knight (1885-1972) was one of the founders of the Chicago school of economics. Three of his students won Nobel prizes: George Stigler, Milton Friedman, and James Buchanan.

One of Knight’s most famous quotes is that “To call a situation hopeless is to call it ideal.”

This is because neither can be improved upon. Almost nothing in the world is ideal; this turns out to be a good thing.