CEI Podcast for August 1, 2013: Is Washington the Next Detroit?

detroit_skyline
Have a listen here.

Fellow in Technology and Entrepreneurship Bill Frezza sees parallels between Detroit’s recent bankruptcy and the federal government’s own fiscal problems. Fortunately, he sees a way out.

Regulation of the Day Update: Pulling a Rabbit Out of a Hat

Not too long ago, I told Marty Hahne’s story. He is a long-time children’s magician who got in trouble with the USDA for using an unlicensed rabbit in his shows. Among other things, he also had to give the agency proof that he was making regular vet visits, and submit to random inspections of his home. The topper was that he had to submit a 28-page disaster plan covering how he would care for his rabbit under at least 21 different calamities.

The publicity surrounding the story caused a bit of a blow to the USDA’s self-esteem. In today’s Federal Register, the USDA’s Animal and Plant Health Inspection Service announced that it is temporarily suspending the relevant regulations. It is doing this “in order that we may undertake a review of their requirements.”

Time will tell what comes out of this review, but hopefully magicians won’t have to apply for federal license if they want to pull a rabbit out of a hat.

Slow News Day

Politico: Bill Clinton dishes on vegan diet

CEI Podcast for July 31, 2013: REINS Act Hits the House Floor

house floor
Have a listen here.

Vice President for Policy Wayne Crews talks about the Regulations from the Executive In Need of Scrutiny (REINS) Act, which is expected to pass the House of Representatives tomorrow. The bill would add some accountability to the regulatory process by requiring Congress to hold an up-or-down vote on all new agency regulations costing more than $100 million per year.

REINS Act to Hit House Floor Tomorrow

Tomorrow, the House will likely vote on the REINS Act. The bill would require Congress to hold up-or-down votes on all new regulations costing more than $100 million. It would add some oversight to a regulatory process that has far too little of it. Agencies can, and often do, regulate with impunity under current rules; hence the need for change. Wayne Crews and I make the case for REINS-style reform over at Forbes:

It’s actually shocking how regulators now do most of America’s lawmaking. In 2012, Congress passed 127 bills, while agencies issued 3,708 regulations. This 29-fold difference is par for the course. This “Anti-Democracy Index”—the ratio of agency rules enacted to legislation passed and signed into law—has not dipped below 12 over the past decade.

The REINS Act would restore some balance. Currently, there are 224 regulations sporting $100 million price tags in the federal pipeline—roughly double the amount of legislation on Congress’ annual plate. Congress should have to approve anything this costly.

Read the whole thing here.

CEI’s Battered Business Bureau: The Week in Regulation

baby turtle
This week in the world of regulation:

  • Last week, 80 new final regulations were published in the Federal Register. There were 68 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, 2,078 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 3,664 new final rules.
  • Last week, 1,684 new pages were added to the 2013 Federal Register, for a total of 45,370 pages.
  • At its current pace, the 2013 Federal Register will run 78,768 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. No such rules were published last week, for a total of 17 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, 143 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 346 final rules affect small business; 32 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

CEI Podcast for July 25, 2013: The UAW and Chattanooga

vw-employees-bl
Have a listen here.

The United Auto Workers union is campaigning to organize a Volkswagen plant in Chattanooga, Tennessee. Senior Fellow Matt Patterson talks about his recent trip to Chattanooga, where he spoke with local politicians and community members about how this might affect the community.

Ronald Coase on Blackboard Economics

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Anyone who has taken an introductory economics course has marveled at how easy it is to suss out the effects of different policies simply by manipulating the familiar intersecting Marshallian supply and demand curves. This geometric analysis is a useful tool for understanding how markets react to different types of changes. But using this approach to actually implement those changes in real life is another matter. Economics is a useful science, but it has its limits. This “blackboard economics,” as Ronald Coase calls it, exceeds those limits. In the introductory essay to his collection The Firm, the Market, and the Law, he explains (p. 19):

The policy under consideration is one which is implemented on the blackboard. All the information needed is assumed to be available and the teacher plays all the parts. He fixes prices, imposes taxes, and distributes subsidies (on the blackboard) to promote the general welfare. But there is no counterpart to the teacher within the real economic system.

Wise and humble words, often forgotten by economists who would rather be engineers.

The NSA Might Be Able to Search Your Emails…

…but it claims to lack the technology to search its own employees’ emails in response to a Freedom of Information Act request from a journalist.

Is This What Amnesty Looks Like?

You know a regulatory system is broken when this qualifies as liberalization:

Click here if the embedded video doesn’t work.