CEI’s Battered Business Bureau: The Week in Regulation

dental-plan-lisa-needs-braces
The Federal Register topped the 35,000-page mark last week. New regulations cover everything from tariffs on foreign cheese to dental implants to fireworks shows.

On to the data:

  • Last week, 78 new final regulations were published in the Federal Register. There were 79 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 9 minutes.
  • So far in 2014, 1,584 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,328 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,265 new pages were added to the Federal Register.
  • Currently at 35,435 pages, the 2014 Federal Register is on pace for 74,444 pages, which would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 19 such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $2.33 billion to $2.72 billion. They also affect several billion dollars of government spending.
  • 120 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 295 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.

Ex-Im Reauthorization Fight: Release the Reagan

ronald raygun
The Export-Import Bank is up for reauthorization in September. If the vote fails in Congress, the Bank and its $140 billion portfolio will cease to exist. In an effort to appeal to free-market types who oppose Ex-Im, the Aerospace Industries Association is invoking Ronald Reagan. A page two ad in yesterday’s Politico and an accompanying fact sheet sent to every member’s office on Capitol Hill prominently feature Reagan’s image and include quotes of the Gipper praising Ex-Im.

The fact sheet notes that Reagan increased the cap on Ex-Im’s lending portfolio by 14 percent from 1981-86, from $8.8 billion to $12 billion. Then again—Reagan cut Ex-Im in 1983 and again in 1988. And over Reagan’s entire time in office, Ex-Im’s cap actually shrank in real terms. You can check the numbers yourself with the Minneapolis Fed’s handy inflation calculator.

And as Veronique de Rugy ably points out here and here, Reagan was no fan of the Export-Import Bank, and said so publicly (see also video evidence).

The fact sheet also contains this gem of a quote:

“Why does a small group of fringe political organizations oppose the U.S. Export-Import Bank? Because they favor the interests of foreign nations over American businesses.”

Where to begin? One, the argument from consensus is a well-known logical fallacy. I don’t know how many people favor or oppose Ex-Im, but I do know it’s based on bad economics and is one of the government’s largest corporate welfare programs.

Two, I was unaware until reading this fact sheet that as an Ex-Im opponent, I “favor the interests of foreign nations over American businesses.” That charge is actually true of Ex-Im itself. When the Bank guarantees loans to foreign airlines for buying Boeing planes, they are literally subsidizing domestic airlines’ direct foreign competitors.

As a general rule, it is better to analyze arguments rather than motives. But roughly 40 percent of Ex-Im’s activities benefit a single company, Boeing, that is a major part of America’s aerospace industry. Even though they surely know the arguments are overwhelmingly against Ex-Im, one understands why they’re fighting so hard to preserve their privilege. One also understands why they are using such shoddy arguments—those are the only kind they have.

If Ex-Im beneficiaries want government handouts—and clearly they do—it would be far more efficient for the government to simply give them cash. Such a policy wouldn’t distort financial markets and international business decisions. The problem is that a naked cash grab would strike voters and most everyone else as unseemly. As the economist Gordon Tullock pointed out, this is precisely is why rent-seekers and politicians create cover stories such as the Export-Import Bank. The trouble is that these cover stories cause real harm to others, from capital-needy startups to established companies like Delta Airlines. The Ex-Im fight could use more honesty on what it’s really about.

Images of Ronald Reagan and appeals to patriotism are cynical ways to lure conservatives into supporting the Export-Import Bank. But Reagan didn’t actually support the Bank, and its mercantilist economics were debunked centuries ago by Adam Smith and David Ricardo. It’s time to move on.

CEI Podcast for June 17, 2014: CEI Celebrates 30 Years

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CEI celebrates its thirtieth anniversary this week at its annual dinner. Founder and Chairman Fred Smith talks about CEI’s past and future successes.

Click here to listen.

Laughing All The Way to the Export-Import Bank

The Kronies are back with a video about the Export-Import Bank, one of the federal government’s largest corporate welfare programs. While the video is less than subtle, it makes the rent-seeking and deal-making surrounding the Bank very clear. Fortunately, the Bank’s charter expires on September 30 of this year. Ex-Im will cease to exist unless Congress votes to reauthorize it. CEI’s Iain Murray recently weighed in on the Ex-Im fight here.

Cronyism is far from the Export-Import Bank’s only problem. It also has enormous opportunity costs. There is only so much investment capital to go around. Every time Ex-Im secures favorable financing for a debacle such as Enron or Solyndra, or a sound company like Boeing or Caterpillar that doesn’t need taxpayer help, a deserving company elsewhere has to pay higher interest rates, or may even be denied financing altogether. The Ex-Im Bank’s portfolio is currently in the neighborhood of $140 billion. This is an enormous amount of capital being politically-directed, instead of market-tested. Here’s hoping Congress decides to end the Export-Import Bank this fall.

CEI’s Battered Business Bureau: The Week in Regulation

Detention Officer Rene Ansley(R) looks o
The 2014 Federal Register climbed past the 34,000-page mark last week, adding nearly 80 final regulations, along with 48 proposed regulations.

On to the data:

  • Last week, 79 new final regulations were published in the Federal Register. There were 75 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 8 minutes.
  • So far in 2014, 1,506 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,303 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,351 new pages were added to the Federal Register.
  • Currently at 34,170 pages, the 2014 Federal Register is on pace for 74,935 pages, which would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 19 such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $2.33 billion to $2.72 billion. They also affect several billion dollars of government spending.
  • 119 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 285 new rules affect small businesses; 42 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.

Public Choice 101: Carl Sagan Edition

From pages 332-333 of Sagan’s superb novel Contact, as spoken by protagonist Ellie Arroway:

“This planet is run by crazy people. Remember what they have to do to get where they are. Their perspective is so narrow, so… brief. A few years. In the best of them a few decades. They care only about the time they are in power.”

I greatly admire Carl Sagan, though his politico-economic analysis is usually rather naive. This time, he nails it.

 

CEI Podcast for June 12, 2014: CEI Sues the NSA

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General Counsel Sam Kazman breaks down the case. Click here to listen.

CEI’s Battered Business Bureau: The Week in Regulation

funny-sheep
New regulations published last week cover everything from what to call UV tanning lamps to the federal government’s National Sheep Industry Improvement Center.

On to the data:

  • Last week, 75 new final regulations were published in the Federal Register. There were 62 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 15 minutes.
  • So far in 2014, 1,427 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,273 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,652 new pages were added to the Federal Register.
  • Currently at 32,819 pages, the 2014 Federal Register is on pace for 75,273 pages, which would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 19 such rules have been published so far this year, one of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $2.33 billion to $2.72 billion. They also affect several billion dollars of government spending.
  • 118 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 273 new rules affect small businesses; 41 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.

Regulatory Improvement Commission

One of my favorite regulatory reform ideas is an independent commission tasked with combing through the 175,000-page Code of Federal Regulations and giving Congress a package of obsolete, redundant, or harmful regulations to repeal in one fell swoop. That idea is now captured in a bi-partisan bill in Congress. Wayne Crews and I wrote about it recently in the Washington Times:

The Regulatory Improvement Act of 2014, recently introduced by Reps. Patrick Murphy, Florida Democrat, and Mick Mulvaney, South Carolina Republican, and Sens. Angus S. King Jr., Maine independent, and Roy Blunt, Missouri Republican, would create a Regulatory Improvement Commission to comb through the Code of Federal Regulations to identify ineffective and obsolete rules. The first time through the code, the commission would focus on a specific policy area — say, technology, agriculture or energy policy — with Congress reconvening the commission as needed going forward.

The commission would then submit to Congress a package of old rules to phase out, subject to an up-or-down vote, with no amendments allowed, in order to avoid vote-trading and backroom deals. To prevent stonewalling, Congress would be required to vote on the package within a set period of time — 30 days in committee, and 60 days after that for a floor vote, with debate time limited to 10 hours.

Read the whole thing here, plus the House and Senate versions of the bill.

Slow News Day

Politico: Secret Service: Obama safe at gym