The President garnered some attention for his January 18 column in the Wall Street Journal, in which he said we need to control the regulatory burden.
Let’s start with the insincere part. He praised capitalism.
America’s free market has not only been the source of dazzling ideas and path-breaking products, it has also been the greatest force for prosperity the world has ever known. That vibrant entrepreneurialism is the key to our continued global leadership and the success of our people.
I’m not really sure how to analyze this passage. Let’s just say it is akin to George W. Bush talking about the need for small government and fiscal responsibility.
Obama then talks about the need for balance, saying that regulations sometimes are too onerous, but then he gets to the inaccurate part.
…we have failed to meet our basic responsibility to protect the public interest, leading to disastrous consequences. Such was the case in the run-up to the financial crisis from which we are still recovering. There, a lack of proper oversight and transparency nearly led to the collapse of the financial markets and a full-scale Depression.
I don’t know whether to laugh or cry at this statement. A part of the government, the Federal Reserve, creates far too much liquidity with an easy-money policy. Other government-created entities, Fannie Mae and Freddie Mac, then create enormous subsidies for bad housing loans. These combined policies lead to a bubble that bursts, and Obama wants us to believe it was a problem of inadequate regulation?!? For those who are interested, here’s a good article from the American Enterprise Institute explaining how government caused the financial crisis.
Now let’s get to the hypocritical part, where the President issues a new executive order, asserting we need to balance costs and benefits.
As the executive order I am signing makes clear, we are seeking more affordable, less intrusive means to achieve the same ends—giving careful consideration to benefits and costs. This means writing rules with more input from experts, businesses and ordinary citizens. It means using disclosure as a tool to inform consumers of their choices, rather than restricting those choices.
I suppose we should give the President credit for chutzpah. Less than one month ago, his Administration proposes an IRS interest-reporting regulation that, in a best-case scenario, will drive tens of billions of dollars out of the U.S. economy. That regulation does not even pretend there are any offsetting benefits, yet Obama says his Administration will be diligent in applying cost-benefit analysis. This is sort of like a kid murdering his parents and then asking a court for mercy because he’s an orphan.
But that example is just the tip of the iceberg. Diana Furchtgott-Roth has a column for Realclearmarkets, where she dings the President for absurd regulations dealing with everything from gender quotes in the Dodd-Fran bailout bill to offshore drilling regulations that have thrown tens of thousands into unemployment lines.
And David Harsanyi, writing in the Denver Post, nails the White House for several examples of regulatory excess, including the EPA’s power grab, the FCC’s unilateral attempt to regulate the Internet, and the nightmarish rules that will be required for government-run healthcare.
Right now the EPA is drafting carbon rules to force on states, even though a similarly torturous 2,000 pages on a cap-and-trade scheme intending to make power more expensive was rejected. Maybe there’s something in that pile of paper to mine? Right now, the FCC is shoving net neutrality in the pipeline — again, bypassing Congress — so government can regulate the Internet for the first time in history, though the commissioners themselves admit that, as of now, any need for rules are based on the what-ifs of their imaginations. There exists no legislation more burdensome and expensive than the “job-crushing” (not “job-killing,” because, naturally, we can’t stand for that kind of imagery) “Patient Protection and Affordable Health Care Act,” formerly known as Obamacare and presently being symbolically repealed by House Republicans.
Obama’s insincerity, inaccuracy, and hypocrisy are unfortunate. The burden of regulation is now estimated to be about $1.75 trillion. Counterproductive red tape is hidden form of taxation that impedes the economy’s performance, and that means less prosperity for America.