CEI’s Battered Business Bureau: The Week in Regulation

The newest batch of federal regulations cover everything from municipal fireworks shows to Venezuelan sanctions. On Monday, the Federal Register will likely pass the 40,000-page mark.

On to the data:

  • Last week, 56 new final regulations were published in the Federal Register, after 91 the previous week.
  • That’s the equivalent of a new regulation precisely every three hours.
  • So far in 2015, 1,658 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,140 new regulations this year, which would be several hundred fewer rules than the usual total of 3,500-plus.
  • Last week, 1,647 new pages were added to the Federal Register, after 1,478 pages the previous week.
  • Currently at 39,905 pages, the 2015 Federal Register is on pace for 75,578 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Fifteen such rules have been published so far this year, one in the past week.
  • The total estimated compliance cost of 2015’s economically significant regulations ranges from $1.16 billion to $1.25 billion for the current year.
  • 138 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2015, 281 new rules affect small businesses; 43 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.

CEI’s Battered Business Bureau: The Week in Regulation

It was a short work week due to the July 4 holiday, but regulators still managed to publish 34 proposed regulations and more than 90 final regulations covering everything from cranberries to rules of acquisition.

On to the data:

  • Last week, 91 new final regulations were published in the Federal Register, after 64 the previous week.
  • That’s the equivalent of a new regulation every one hour and 51 minutes.
  • So far in 2015, 1,602 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,071 new regulations this year, which would be several hundred fewer rules than the usual total of 3,154-plus.
  • Last week, 1,478 new pages were added to the Federal Register, after 1,343 pages the previous week.
  • Currently at 38,258 pages, the 2015 Federal Register is on pace for 75,312 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Fourteen such rules have been published so far this year, one in the past week.
  • The total estimated compliance cost of 2015’s economically significant regulations ranges from $1.14 billion to $1.22 billion for the current year.
  • 133 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2015, 269 new rules affect small businesses; 40 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.

 

More to Markets than Wealth

From p. 92 of James Buchanan’s 2005 essay collection Why I, Too, Am Not a Conservative:

I have often noted how much better it would have been had Adam Smith entitled his treatise ‘the simple system of natural liberty’ rather than The Wealth of Nations, since his very title called direct attention to the aggregate of value generated, despite Smith’s intent and purpose.

Adam Smith’s intent and purpose, of course, was to describe and defend what he called the simple system of natural liberty. The fact that this system enables efficient wealth creation is a good thing, but a second-order benefit.

Buchanan’s intent and purpose is point out that, like Smith’s choice of title, many classical liberals only care about the wealth aspects of markets. This focus is a mistake. Markets’ virtues run far deeper, in a way that can resonate deeply with people of nearly all philosophical persuasions.

This is because market orders are almost completely subjective. Different people have different preferences, and want different things. Because markets treat people as equals, very different people are free to cooperate and exchange with each other however they want, so long as they respect others’ equal rights to do the same. That way you can get the bundle of goods you want, I can get the very different bundle of goods I want, and so on.

Compare this to an election where your choice is between one politician with one bundle of policies, or his opponent with a second bundle of policies. You can’t pick and choose the positions you like from each candidate, and discard the ones from each that you don’t. It’s an all-or-nothing deal.

Markets are more than wealth creation engines. They are dignity creation engines. You can choose how you eat, dress, live, work, and play in a way that top-down systems cannot, or will not, provide. Politics doesn’t work that way, but markets can, when they’re allowed to.

This, Buchanan argues, is markets’ true appeal. The fact that so many classical liberals focus instead on efficiency is as poor a salesmanship job as he saw in his long lifetime.

In a way, it is classical liberals’ own fault their views are unpopular.

Toddlers and Intellectuals

From Vernon Smith‘s 2008 book Discovery: A Memoir, pp. 15-16:

[A]ny three-year old can force you to the outer-most limits of your knowledge on any topic by asking, “Why?” three times in response to any answer.

Vernon  truly knows what intellectual humility is, along with a few others including Montaigne, Voltaire, Bastiat, Hayek, and Buchanan. It’s a shame their club is so small. Economics, especially, would be in a much better place if more of its practitioners realized that their most painstakingly constructed intellectual edifices can be dismantled in minutes by a toddler.

On the Radio: Ex-Im

Last week, I appeared on Ox in the Afternoon on KNSI in Minnesota to talk about Ex-Im. They were kind enough to post a clip of the segment here.

Tomorrow, at 11:35 am, I will appear on The Morning Report with Tim Farley, which airs on Sirius/XM channel 124. I will post audio later if it’s available.

Five Reasons to Abolish Ex-Im

ex-im-2

I meant to post this here earlier, but my CEI colleagues recently put together some excellent Ex-Im graphics explaining why the agency should close.

See them all here.

Ex-Im Has Officially Expired

ex-im authority has lapsed

Today is a victory day of sorts. Ex-Im’s charter has expired, and Congress declined to reauthorize it. The agency will remain open and will service its existing loan guarantees, but cannot make new ones. As of this writing, its website also says “authority has lapsed” in big capital letters (see picture above).

This victory was a team effort all the way. Over at the Cato Institute blog, Dan Ikenson celebrates (cross-posted at the Foundation for Economic Education) and gives kudos to a lot of the team’s key players. I am honored that he lists me among them.

This fight is far from over, but today marks an important milestone. More to say on that soon.

CEI’s Battered Business Bureau: The Week in Regulation

The big news from last week was the Supreme Court’s King v. Burwell decision, which upheld the IRS’ right to issue regulations directly contradicting legislation passed by Congress and signed by the president. But other agencies also issued more than 60 new regulations covering everything from cotton farmers’ conduct to infant formula.

On to the data:

  • Last week, 64 new final regulations were published in the Federal Register, after 81 the previous week.
  • That’s the equivalent of a new regulation every two hours and 38 minutes.
  • So far in 2015, 1,511 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,071 new regulations this year, which would be several hundred fewer rules than the usual total of 3,500-plus.
  • Last week, 1,343 new pages were added to the Federal Register, after 1,542 pages the previous week.
  • Currently at 36,780 pages, the 2015 Federal Register is on pace for 74,757 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Thirteen such rules have been published so far this year, two in the past week.
  • The total estimated compliance cost of 2015’s economically significant regulations ranges from $1.50 billion to $1.57 billion for the current year.
  • 125 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2015, 261 new rules affect small businesses; 37 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.

CEI’s Battered Business Bureau: The Week in Regulation

The Federal Register passed the 35,000-page mark with new regulations covering everything from food additives to chimpanzees.

On to the data:

  • Last week, 81 new final regulations were published in the Federal Register, after 64 the previous week.
  • That’s the equivalent of a new regulation every two hours and 4 minutes.
  • So far in 2015, 1,446 final regulations have been published in the Federal Register. At that pace, there will be a total of exactly 3,064 new regulations this year, which would be several hundred fewer rules than the usual total of 3,500-plus.
  • Last week, 1,542 new pages were added to the Federal Register, after 1,752 pages the previous week.
  • Currently at 35,437 pages, the 2015 Federal Register is on pace for 75,078 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Eleven such rules have been published so far this year, none in the past week.
  • The total estimated compliance cost of 2015’s economically significant regulations ranges from $1.39 billion to $1.46 billion for the current year.
  • 119 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2015, 255 new rules affect small businesses; 35 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.

Reasons to Oppose the Ex-Im Bank, Part 4: False Economic Catastrophism

The Export-Import Bank’s charter expires on June 30. This series of posts makes the case for closing Ex-Im, one argument at a time. See also parts 1, 2, and 3.

General Electric CEO Jeffrey Immelt is claiming that closing the Export-Import Bank would mean “economic catastrophe.” He must use the term differently than most people do. A bit of math shows why.

According to page 6 of Ex-Im’s 2014 annual report, the bank did $27.5 billion of business in 2014. The Bureau of Economic Analysis estimates GDP in the fourth quarter of 2014 to be $17.7037 trillion (see Table 3, page 8). This means Ex-Im’s business last year was equivalent to about one sixth of one percent of GDP. This is par for the course.

Confining the comparison just to America’s $2.35 trillion of exports, everything Ex-Im did all of last year is equivalent to less than 1.2 percent of exports. Seeing as many Ex-Im-financed projects would still happen without the bank’s involvement including GE, by Immelt’s own admission—its true net impact is almost certainly much smaller than that.

If anything, by redirecting billions of dollars of capital towards the politically connected and away from deserving entrepreneurs, Ex-Im is preventing the economy from reaching its true potential.