On his radio show, Larry Kudlow discussed the size and enormity of government regulations in the last decade, now increasing at a phenomenal rate under Obama. According to one Lafayette.edu study, estimates indicate that between 2000 and 2004 the cost per worker of all federal regulations increased by $224, a 4.1 percent increase, after adjusting for inflation. Lafayette Study Here Wayne Crews of the Competitive Enterprise Institute in his annual scorecard said there are 4000 new regulations in the pipeline and in 2010, the bureaucrats set an all-time record of churning out 81,405 pages in the Federal Register of new proposed rules that businesses pay for and then ultimately the consumer. Between the taxes and the regulations, why wouldn’t we have one of the worst recoveries in post-war history.
Also in 2010, federal agencies issued 3,573 final rules. In one year, from 2008 to 2009, proposed rules have jumped to an alarming 19.3%. Given 2010’s government spending (outlays) of $3.456 trillion, the regulatory “hidden tax” of $1.75 trillion stands at an unprecedented 50.7 percent of the level of federal spending itself.The cost of the regulatory state
Tom Donohue, CEO of the Chamber of Commerce, gave his annual State of Business address in Washington and said, “When it comes to the nation’s economy, we begin 2011 in better shape than we found last year,” said Tom Donohue, chief executive of the U.S. Chamber of Commerce. “Yet we still face a number of risks that could send us in the wrong direction.” He said that if regulatory roadblocks were “swept away,” 180 billion would be freed up to invest in the economy. Donohue said the Dodd-Frank Wall Street reform act passed last year for contains 259 rules, another 188 suggested rules, 63 reports and 59 studies.
“The resulting regulatory tsunami poses the single biggest challenge to jobs, global competitiveness and the future of American enterprise,” said Donohue, who blamed regulations for costing the U.S. economy $1.7 trillion per year. Donohue talked about the EPA, The Labor Board, and the new healthcare bill as damage the business sector.
The Healthcare law brings us 429 regulations for every 6 pages and there are over 2000 pages. Section 3022 of the law, which is about the Medicare shared savings program, take up just six pages in the 907-page Patient Protection and Affordable Care Act. But HHS has turned that into 429 pages of new regulations and that’s too much, says Republican Wyoming Sen. John Barrasso, a practicing doctor. The regulations will be costly – they always are. Read here: Thousands of Costly Regulations
And there is the EPA. They are doing endless end-runs around Congress. The EPA was never authorized to determine fuel economy standards for motor vehicles, much less dictate national policy on climate change. They are doing it anyway. For instance, the EPA passed the Endangerment Rule, which contains the agency’s “finding” that GHG emissions endanger public health and welfare. The Endangerment Rule both authorizes and obligates EPA to issue hosts of regulations. Read about it here: EPA Power Grab
When President Obama was asked how he would further his agenda with a GOP-controlled House, he said, there is more than one way to skin cats. In President Obama’s State of the Union address, he said, “By 2035, 80 percent of America’s electricity will come from clean energy sources.” That is a problem since the US gets roughly 70% of its electricity from coal, natural gas and petroleum. Another 19.3% comes from nuclear power, and only 9.5% comes from “clean energy” like hydroelectricity and wind.
So how do we go from 9.5% “clean” energy to 80%? His plan is to regulate the coal industry to death, literally. The Obama administration’s own experts estimate their proposal for protecting streams from coal mining would eliminate thousands of jobs and slash production across much of the country, according to a government document obtained by The Associated Press. Read here: Coal regulations aimed at destroying the industry with nothing to take its place
Then there is the Dodd-Frank financial reform which will negatively impact bank services/costs as its implementation takes effect. “Banks are faced with increased regulatory costs, which in turn dampen the outlook for revenue growth,” analysts at Keefe, Bruyette & Woods wrote in a recent report summing up first-quarter bank earnings.
“Balance sheets continue to shrink, particularly loans, which further weakens the outlook for significant [net interest margin] expansion and, ultimately, revenue growth,” they wrote. “Fee income also remains under pressure from regulatory costs and lackluster mortgage revenues.”
In February, House Natural Resources Committee Chairman Doc Hastings (WA-04) said, “Gasoline prices are rising and we have near double-digit unemployment. The Obama Administration should be doing everything within its power to spur economic growth and create new jobs.
Unfortunately, they have not. This Administration has chosen to impose regulation after regulation and policy after policy, on American businesses that impede their growth potential and thus impede our economic recovery.
He cited several examples: First, burdensome regulations are being used to restrict access to American energy production on public lands – both onshore and offshore. Second, the Obama Administration is aggressively pursuing sweeping new changes to mining regulations. These regulations, by their own admission, will cost thousands of American jobs and decrease American energy production in 22 states.Third, the Obama Administration has reversed a long-standing legal agreement and moved to establish a new “wild lands” policy that will further restrict public access to multi-purpose public lands. Fourth, the President has signed an Executive Order establishing a new National Ocean Policy and Council that could severely restrict recreational and commercial use of our oceans. Fifth, the Environmental Protection Agency has allowed questionable science to be used to impose regulations that could end the use of vital farm crop and tree protection products. This will cost jobs and adversely impact trade of our agricultural products.
And last, the Obama Administration has supported withholding valuable water from communities in California’s San Joaquin Valley, prioritizing the needs of a three-inch fish over thousands of workers and their families. Read more here: Hastings discusses lost jobs due to Obama’s policies and regulations
The cost of regulatory compliance in the US is $1.75 trillion. This brings the government’s total share of the economy to 35.5% (when added to spending).
According to journalist Edward Wyatt, there are currently 1.2 million patent applications pending—a total derived from the backlog of 700,000 patents awaiting their first action by an examiner at the Patent and Trademark Office, and the 500,000 patents that are in process. Not a good thing for the inventor or the investor.
Obama wants us to think he will reduce the burdensome regulations inhibiting business, but that’s quite fake. One only has to look at his executive which says agencies must consider “equity, human dignity, fairness, and distributive impacts” as benefits of regulation. Social justice is in love with regulations and inequity. After the order came out, every government agency said they are in compliance and the EPA said in a statement that it was “confident” it wouldn’t need to alter a single current or pending rule. YEAH, SURE.
Cantor is afraid the Republican budget-cutting message is a little too austere, so he’s attempting to balance the necessary budget cuts with a pro-growth, tax-and-regulatory reform message.
Cantor focuses especially on getting business tax rates down to at least 25 percent. He also proposes a tax holiday to repatriate the foreign earnings of U.S. companies. So many CEOs have made the same argument. And this was done successfully in 2004-05. If enacted, maybe $1 trillion in cash will flow back home for new investment and jobs.
In the last 10 years, our economy has grown by 2% or less per year – anemic by any standard. Eric Cantor called for a 5% growth agenda, but “no sooner did Cantor make this speech, than the Treasury shot down any idea of a corporate-tax holiday. I guess this is the same Treasury that works for the Obama 2.0 pro-business president. Or not,” says Larry Kudlow. Read here: Cantor’s pro-growth message
In this video, Congressman Ribble discusses the GOP pro-growth message. It’s unfortunate this has had only 94 views and the GOP can’t get time on the lamestream media, aka the unfree press.
The government-run countries in the world are collapsing. Look at Cuba, Greece, Ireland, Portugal, Italy and so many others. Socialism has never worked and neo-communism is even worse. The bottom line is by 2012, we will be socialists and this economy cannot take 4 more years of these policies if we hope to remain a capitalist, free market nation – a free nation. Live Free or Die!