State of the Union Roundup

CEI has posted highlights from our State of the Union live blog here.

Live Blogging the State of the Union

My CEI colleagues and I will be live blogging tonight’s speech over at OpenMarket.org. Click here to follow along, starting around 8:30 EST.

The Armchair Economist Interviewed

The new issue of RegionFocus, published by the Richmond Fed contains an interview with Steven Landsburg, one of my favorite economists. In this quote, he explains his habit of drawing counterintuitive conclusions from widely accepted basic principles:

Counterintuitive examples do run the risk of just causing some people to shut down. But I like them because, first of all, they’re fun. We laugh at jokes because they’re counterintuitive. They appeal to the sense of playfulness in us. So, partly, it filters the audience. The people who are just not willing to listen to something counterintuitive are probably the people who are not going to learn anything anyway. It brings in the sort of people who have more open minds.

Beyond that, when you are forced to a really counterintuitive conclusion, from what appeared to be completely noncontroversial principles, that’s when you’ve learned something. I mean, if all we ever learned were things we sort of knew anyway, then we wouldn’t really be learning. The fact that a set of noncontroversial principles leads to a very surprising conclusion causes you to become aware that those principles are much more powerful than you thought they were. It causes you to confront your prejudices, causes you to open your mind up and be willing to see the world in a somewhat wider way, and makes you more open to the idea that you might be wrong about other things. It helps you understand that there might be a lot of things that are worth rethinking that you didn’t have exactly right the first time around.

The world would be a better place if more people, economists or not, shared Landsburg’s intellectual humility and open mind. Read the whole interview here (PDF). Landsburg’s blog is also worth reading.

Pitchers and Catchers

Today is a glorious day. Pitchers and catchers are reporting for spring training. The dark, depressing days in the calendar between football and baseball seasons are almost over.

This blog’s favorite team, the Milwaukee Brewers, don’t hold their first official workout until tomorrow. But many players have already shown up, whether out of a veteran’s offseason boredom or a prospect’s desire to make a good impression on the higher-ups. Either way, the boys of summer are getting ready, and opening day can’t get here soon enough.

CEI’s Battered Business Bureau: The Week in Regulation

indiana vineyard
This week in the world of regulation:

  • Last week, 61 new final regulations were published in the Federal Register. This is down from 70 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 46 minutes — 24 hours a day, 7 days a week.
  • All in all, 321 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 3,004 new final rules.
  • Last week, 1,931 new pages were added to the 2013 Federal Register, for a total of 9,559 pages.
  • At its current pace, the 2013 Federal Register will run 88,510 pages.
  • 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 7 so far in 2013.
  • The total compliance costs of this year’s economically significant regulations ranges from $2.518 billion to $4.768 billion.
  • So far, 30 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 59 final rules affect small business; 7 of them are significant rules.

Highlights from final rules published last week:

  • One of last week’s two economically significant rules comes from the Rural Utilities Service. The agency plans to expand broadband Internet access in rural areas by guaranteeing loans. No expected cost is given, though the rule is quick to trumpet its expected benefits.
  • The other economically significant rule comes from the Centers for Medicaid and Medicaid Services. It involves children’s health insurance, transparency reports, and financial disclosures for physicians. Despite acknowledging “a substantial amount of uncertainty in these [cost] estimates,” the rule nevertheless estimates its first-year labor costs to the nearest dollar: $193,037,104.
  • If you grow tomatoes in Florida, the Agricultural Marketing Service will now charge you 2.4 cents per 25-pound carton, down from 3.7 cents.
  • If you were planning on exporting nuclear materials to South Sudan, the Nuclear Regulatory Commission would rather you didn’t.
  • There are new official winemaking regions in Oregon and Indiana.

For more data, go to TenThousandCommandments.com.

No More Regulation without Representation

In 2011, agencies finalized 47 times as many regulations as Congress passed laws. This is anti-democratic. Over at the American Spectator, Wayne Crews and I show just how bad the problem of regulation without representation is by using Wayne’s handy Anti-Democracy Index. Then we suggest that the REINS Act, recently reintroduced in the House by Rep. Todd Young (no relation), would help reduce the problem:

Rep. Todd Young (R-Ind.) has just introduced the Regulations from the Executive In Need of Scrutiny REINS Act (H.R. 367), which would only require Congress to vote on rules expected to cost $100 million or more per year (perhaps recognizing that it might be a bit much to ask Congress for individual votes on 3,500-plus rules every year). It would still increase Congress’ workload — there are 224 such rules at various stages of the rulemaking process right now — but it would also increase congressional accountability. As tradeoffs go, this is a good deal.

Read the whole thing here.

The Case for Unilateral Free Trade

When one country puts up a barrier to foreign trade, its partners tend to return the favor. This is, to put it politely, a poor recipe for economic health. On page 360 of Lawrence White’s excellent book The Clash of Economic Ideas, he quotes Joan Robinson explaining why in one pithy sentence:

The logic of embracing free trade unilaterally, that is, no matter what policy any other national government adopts, is well expressed in an adage attributed to the economist Joan Robinson: Even if your trading partner dumps rocks into his harbor to obstruct arriving cargo ships, you do not make yourself better off by dumping rocks into your own harbor.

National governments tend to ask for a quid pro quo from their citizens’ trading partners before lowering tariffs and quotas and other nonsense. One understands the impulse; that is why it takes internationally negotiated agreements such as NAFTA to get anyone to dredge up said rocks. The point is that those rocks are a bad thing in and of themselves. Get rid of them, then. Even if you have to do it alone.

CEI Podcast for February 7, 2013: Energy Secretary Chu Resigns

steven chu
Have a listen here.

William Yeatman, Assistant Director of CEI’s Center for Energy and Environment, looks at former Energy Secretary Steven Chu’s record in office, who might succeed him, and what lies ahead in energy policy.

This First Rule of Driving in DC Is Don’t

NBC: New Report: D.C. Area Really Does Have the Worst Traffic in the U.S.

CEI’s Battered Business Bureau: The Week in Regulation

Airplane-Bathroom
This week in the world of regulation:

  • Last week, 70 new final regulations were published in the Federal Register. This is up from 56 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 24 minutes — 24 hours a day, 7 days a week.
  • All in all, 260 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2013 will be 2,966 new final rules.
  • Last week, 1,931 new pages were added to the 2013 Federal Register, for a total of 7,628 pages.
  • At its current pace, the 2013 Federal Register will run 86,591 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. One such rule was published last week, for a total 5 so far in 2013.
  • The total compliance costs of this year’s economically significant regulations ranges from $2.325 billion to $4.575 billion.
  • So far, 19 final rules that meet the broader definition of “significant” have been published in 2013.
  • So far this year, 47 final rules affect small business; 4 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.