CEI Podcast for October 3, 2013: The Federal Shutdown

washington-united-states-capitol-washington-d-c-dc154
Have a listen here.

For the 17th time since 1976, the federal government has shut down over a partisan fiscal squabble. Vice President for Strategy Iain Murray gives his thoughts on how it happened, what the consequences will be, and what is at stake.

Regulatory Transparency Is Decidedly Lacking

Regular readers know that the federal government issues about 3,700 new regulations in an average year. But how many of those rules actually receive proper review, with cost and benefit estimates? Wayne Crews and I did some digging on that front, and the answer is not pretty: the Office of Management and Budget reviewed a grand total of 47 regulations last year, or a little more than 1 percent of the total. In today’s Washington Times, we lay out the problem and propose some solutions:

The OMB should ensure any new proposal creates more value than it destroys. One reason agencies regulate so recklessly is that they know few people are paying attention. Expanding Executive Order 12866 to include independent agencies would allow the agency to review more rules, though it would still fall well short of transparency. The Code of Federal Regulations contains more than 1 million regulations, with thousands more being added every year, according to George Mason University’s RegData project.

If only Washington paid as much attention to regulations as we’re learning it pays to our private phone calls and emails.

Read the whole thing here.

How Not to Write a Lede

In journalism, the lede is the first sentence or two of a story. It’s spelled that way to disambiguate it from the various meanings of the word “lead.” The lede’s job is to summarize the story as succinctly as possible while inviting the reader to read further. Some ledes, however are better than others:

SPOKANE, Wash. — The Spokane City Council will discuss a proposed ordinance that would make unlawful public exposure a criminal misdemeanor on Monday night.

Taken literally, if you feel like engaging in some good-old-fashioned public nudity in Spokane, don’t do it on a Monday. Wait until Tuesday. Or, if it’s Sunday night, hurry up and get out there! Unfortunately for exhibitionists, one doubts this was the reporter actually meant to say.

CEI’s Battered Business Bureau: The Week in Regulation

duck hunter nes dog
This week in the world of regulation:

  • Last week, 80 new final regulations were published in the Federal Register. There were 76 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 6 minutes — 24 hours a day, seven days a week.
  • All in all, 2,750 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 3,718 new final rules.
  • Last week, 1,622 new pages were added to the 2013 Federal Register, for a total of 59,578 pages.
  • At its current pace, the 2013 Federal Register will run 79,227 pages, which would be good for fourth all time. The current record is 81,405 pages, set in 2010.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Five such rules were published last week, for a total of 28 so far in 2013.
  • The total estimated compliance costs of this year’s economically significant regulations ranges from $6.39 billion to $11.62 billion.
  • So far, 243 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 520 final rules affect small business; 70 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

Spontaneous Order in One Sentence

“The great society indeed became possible by the individual directing his own efforts not towards visible wants but towards what the signals of the market represented as the likely gain of receipts over outlay.”

-F.A. Hayek, “Adam Smith (1723–1790): His Message in Today’s Language”, The Trend of Economic Thinking, 117. (PDF)

That process, writ large, is the single most powerful force in all the social sciences. It has conquered hunger, disease, and poverty wherever it has been allowed to operate with a reasonable degree of freedom.

CEI Podcast for September 26, 2013: “The Cupboard Is Bare”

nancypelosi
Have a listen here.

On Sunday, House Minority Leader Nancy Pelosi opposed the notion of federal spending cuts, saying that “The cupboard is bare” and “There’s no more cuts to make.” This not actually being the case, Senior Communications Director Brian McNicoll lists off a series of programs and departments that should be removed from the very full federal cupboard.

Slow News Day

Madeleine-Albright-panda
Politico: Madeleine Albright joins Twitter

The Regulatory Improvement Commission

There are a lot of old and obsolete regulations on the books. This is low-hanging fruit that agencies and Congress could easily pick, but neither has shown much appetite for doing so. The solution: an independent Regulatory Improvement Commission. The idea has been around for at least twenty years, and has garnered bipartisan support.

Senators Angus King (I-Me.) and Roy Blunt (R-Mo.) are introducing a bill that would create just such a commission. Over at The American Spectator, Wayne Crews and I discuss the proposal:

After identifying one area of emphasis — say, technology, or food and drug safety — the Commission would comb the books for outdated, redundant, and inefficient rules in that policy area. Along the way, it would also solicit comments and suggestions from the public and affected industries.

The Commission then works those comments and suggestions into a single legislative package to be sent to the relevant congressional committees. The committees will then have up to 30 days to review the package legislation, but not to scuttle it. After that, it would head to the House and Senate floors for a vote.

The vote would be straight up-or-down, with no amendments allowed. This prevents vote-trading among lawmakers agreeing to save one another’s pet regulations. In other words, no log-rolling allowed. If a member ends up taking political heat for voting in favor of the package, he or she will have plenty of company. All members can rightly say that the total benefits of the package exceed any parochial costs to one’s district.

Read the whole thing here.

CEI’s Battered Business Bureau: The Week in Regulation

Shelter-Cat
This week in the world of regulation:

  • Last week, 76 new final regulations were published in the Federal Register. There were 61 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 13 minutes — 24 hours a day, seven days a week.
  • All in all, 2,670 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 3,706 new final rules.
  • Last week, 1,339 new pages were added to the 2013 Federal Register, for a total of 57,956 pages.
  • At its current pace, the 2013 Federal Register will run 79,175 pages, which would be good for fourth all time. The current record is 81,405 pages, set in 2010.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Two such rules were published last week, for a total of 28 so far in 2013.
  • The total estimated compliance costs of this year’s economically significant regulations ranges from $5.78 billion to $10.39 billion.
  • So far, 231 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 510 final rules affect small business; 67 of them are significant rules.

Highlights from final rules published last week:

  • The first economically significant rule of the week is part of the Affordable Care Act. It enacts a $548 million “Reduction in Disproportionate Share Hospital Allotment.” Since this affects government spending and not compliance costs, I am scoring this rule as zero-cost in our running compliance cost tally. The rule does add new reporting requirements, but without estimating the paperwork and man-hour costs of complying with them.
  • The other economically significant rule is another rule for migratory bird hunting, and includes the same estimated consumer surplus of $317.8 to $416.8 million as all of this year’s other migratory bird hunting regulations. Since the rule says nothing about compliance costs, I am also scoring this rule as zero-cost.
  • New requirements for mango imports from Australia include “a phytosanitary certificate with an additional declaration that the conditions for importation have been met.”
  • Lawyers rejoice: prostate cancer is now on the official list of World Trade Center-related health conditions.
  • The Mount Charleston blue butterfly, a Nevada native with a one-inch wingspan, is now an endangered species. The Fish and Wildlife Service will soon be designating critical habitat.
  • The Animal and Plant Health Inspection Service issued a 24-page rule defining “retail pet store.”
  • Regulations are often behind the curve; the Agricultural Marketing Service is updating its food container regulations to “align the standards to reflect current industry practices.”
  • If you grow Vidalia onions in Georgia, you are required to submit a monthly report to the Agricultural Marketing Service. A new rule establishes “the first business day after the tenth day of the month” as the report’s due date.

For more data, go to TenThousandCommandments.com.

CEI Podcast for September 20, 2013: The EPA’s Latest Attempt to Ban Coal

Coal-Fired-Power-Plant
Have a listen here.

A proposed rule issued today by the EPA would effectively ban new coal-fired power plants from being built. According to William Yeatman, Assistant Director of CEI’s Center for Energy and Environment, the consequences would be disastrous.