Showing posts with label regulatory burden. Show all posts
Showing posts with label regulatory burden. Show all posts

Sunday, May 26, 2013

Our Non-Democratic Bureaucratic Government

George Washington Univ. Law Prof. Johnathan Turley, writing at the Wapo, has had an epiphany:

[Our federal government] is dangerously off kilter. Our carefully constructed system of checks and balances is being negated by the rise of a fourth branch, an administrative state of sprawling departments and agencies that govern with increasing autonomy and decreasing transparency. . . .

This exponential growth has led to increasing power and independence for agencies. The shift of authority has been staggering. The fourth branch now has a larger practical impact on the lives of citizens than all the other branches combined.

The rise of the fourth branch has been at the expense of Congress’s lawmaking authority. In fact, the vast majority of “laws” governing the United States are not passed by Congress but are issued as regulations, crafted largely by thousands of unnamed, unreachable bureaucrats. One study found that in 2007, Congress enacted 138 public laws, while federal agencies finalized 2,926 rules, including 61 major regulations.

This rulemaking comes with little accountability. It’s often impossible to know, absent a major scandal, whom to blame for rules that are abusive or nonsensical. . . .

Welcome to the party Prof. Turley. Or as Stephen Heyward srites at Powerline of the professor, In Praise Of Slow Learners. As I wrote last year in a detailed post, End The Tyranny - Stop Regulation Without Representation, this as the single greatest systemic threat to our form of government.

To his credit, Prof. Turley concludes likewise:

In the new regulatory age, presidents and Congress can still change the government’s priorities, but the agencies effectively run the show based on their interpretations and discretion. The rise of this fourth branch represents perhaps the single greatest change in our system of government since the founding.

We cannot long protect liberty if our leaders continue to act like mere bystanders to the work of government.

The problem is that this is completely off the radar screen in our national discourse.







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Saturday, February 9, 2013

EPA - Out Of Control & Lawless

I wrote below on how Obama is wholly bastardizing our Constitutional form of government by governing through the regulatory agencies. The worst of these is the EPA, an organization being used to legislate a radical green war on coal and oil, as well as to further the interests of entrenched green interests. Most recently: the EPA is tasked to base its decisions on science, but it has ignored that to issue new regulations requiring gasoline to be mixed with 15% ethanol; and the EPA is fraudulently using the courts and friendly plaintiffs to gain powers it is not authorized by its own regulations.

Ethanol mandates are a result of Bush era laws that require ever increasing amounts of ethanol from a variety of sources to be blended with gasoline through 2022. It is an insane boondoggle that benefits no one other than select agricultural special interests, and its impact on food prices and land use has been both substantial and extremely negative. The current EPA mandate for gas to contain 10% ethanol is no longer sufficient to meet legal mandates, so the EPA is now requiring refineries to increase ethanol to 15%. The problem - ethanol burns much hotter than octane while providing significantly less energy. There is real concern as testing shows that an E15 gasoline mix can ruin engines of all types, not merely autos. And yet:

In 2010 and 2011, EPA gave the green light to use E15 - the 15 percent ethanol gasoline blend - in model-year-2001-and-later cars and some other vehicles. EPA's action was irresponsible. EPA knew E15 vehicle testing was ongoing but decided not to wait for the results.

This was a political decision by the EPA, one taken irrespective of current reality.

But far more troubling is the EPA's fraudulent use of our court system as an end around the limits of the EPA's regulatory authority. It is referred to as "sue and settle." A friendly radical green plaintiff brings a law suit, the EPA doesn't contest the suit, but rather agrees to take certain actions that go beyond its authority, either by extending its authority or creating de facto new regulations without going through the procedures required by law to create such regulations. The most recent case, discussed in detail here, involves imposing new draconian federal regulations on coal usage in states, justified on the basis of a "sue and settle" court order, irrespective of the fact that the law provides for state primacy in that particular area.

I have been saying for years now that the laws that allow for greens to have standing to bring law suits based on environmental and endangered species laws - and equally, that provide for payment of plaintiff's attorneys fees - are massively corrupt and need to be changed. The cost to our economy from abusive law suits are massive. But the corruption involved in "sue and settle" suits is criminal. Government officials should be put in jail over this.





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Sunday, April 1, 2012

Who Voted For The End To Coal?

The Obama EPA's war on coal is nearly complete. On Tuesday, the EPA issued it's first proposed rule for green house gases that will effectively prevent any new coal plant from being built, at least beyond the 20 or so in the pipeline today. This from the CS Monitor:

The Obama administration on Tuesday proposed the nation’s first-ever restrictions on greenhouse gas emissions from US power plants. If approved, the restrictions are expected to sharply curb construction of new coal-fired power plants nationwide.

The proposed restrictions, unveiled by officials at the Environmental Protection Agency, would apply only to new fossil-fuel-burning power plants – limiting them to no more than 1,000 pounds of carbon dioxide emissions per megawatt generated.

A typical coal-fired plant produces more than 1,700 pounds of carbon dioxide per megawatt. Most natural-gas fired plants – the majority of power plants under construction today – emit less than the new standard, around 800 pounds per megawatt.

The Obama EPA's other recently issued rules, the Cross State Air Pollution Rule, Boiler MACT, and Mercury and Air Toxics Standards, all attack existing coal fired power plants. Coal provides nearly 50% of our electrical generating capacity today.

We may be lucky. Obama, when he started the war on coal, sold the fantasy of replacing coal with solar and wind - yet neither are any closer to being cost effective at scale today than they were in 2009. That said, natural gas, which has exploded in recent years, may provide a replacement. Still, the overhead costs of building new LNG plants to replace working coal plants prior to the end of their natural period of operation will be significant. Then there is the question of how much the price of natural gas will rise as demand increases exponentially to replace coal. So whatever happens, electric costs are going to rise, the only questions are by how much and whether we will experience significant disruptions of electric service as part of this top down forced replacement of coal.

All of that said, the question that we should be asking is this, did any of our elected representatives vote into law a bill driving coal from our energy marketplace? No, quite the opposite, when the President's energy plan was presented two years ago, it couldn't make it out of the Senate. So why is it that something so fundamental to our nation is being decided based on regulations made without the approval of our elected representatives and in contravention of Article I, Section I of our Constitution (all legislative power is vested in Congress). This out of control, extra constitutional regulatory bureaucracy is the single greatest systemic problem our nation faces. As I wrote in a prior post, End The Tyranny - No Regulation Without Representation.







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Friday, March 16, 2012

End The Tyranny - No Regulation Without Representation (Updated)

Update: The House has proposed passage of the REINS Act. After reviewing the entire text, I am satisfied that it is the solution needed to restore the Constitutional balance between Congress and the Executive on this most critical issue.

In a dictatorship, laws are passed by unelected government bureaucrats without reference to the will of the people, nor subject to review by elected representatives. So what's the difference between that and our form of government? Today, not so much.

Our Founding fathers created by the Constitution a republic. In Art. I, Sec. I of the Constitution, they vested all legislative powers of our republic in Congress. The Founders further provided a framework that allowed Congress to, at any time, review prior law and, if appropriate, vote to repeal it. And most importantly, the Founding Fathers provided that each Congressman voting for or against the laws was directly subject to the ballot box. We no longer live in that world.

Today, Congress does not solely wield the legislative power of our nation. Indeed, Congress is very far from even being the most important source of our legislation.   Our nation now most clearly resembles the socialist regulatory bureaucracy of the EU, where mountains of regulations with the full force and effect of law are passed by unelected bureacrats.  In our nation today, individuals, businesses, and private and public organizations can be fined, sanctioned, forced to close, and jailed for violating federal regulations that have never been subject to a vote by our elected representatives, nor signed into law by the President. The genius of our Constitutional system of checks and balances is wholly obliterated in the tyranny of our modern the regulatory bureaucracy.

This is a grave issue under Obama, but it is also much bigger than just his wholesale abuse of the regulatory bureaucracy. The growth and dictatorial power of the regulatory bureaucracy is a systemic toxin overlaid upon our government by FDR, and its substantial growth now threatens to wholly undermine our form of government, taking our most important legislation completely outside the purview of our elected representatives.

This has reached crisis proportions under Obama and his administration, who have utterly run amok, passing mountains of regulations drastically effecting our nation, all of which have bypassed Congress.



Under Obama, the size of the Federal Register, wherein all new regulations and modifications to existing regulations are published, grew from 68,000 pages in 2009 to over 82,000 pages in 2011. And Obama is just warming up. A tsunami of new regulations wait in the wings from Obamacare, Dodd-Frank, the FCC and the EPA, none of which will ever be voted upon by a single elected representative. This from Heritage:

During the first three years of the Obama Administration, 106 new major federal regulations added more than $46 billion per year in new costs for Americans. This is almost four times the number—and more than five times the cost—of the major regulations issued by George W. Bush during his first three years. Hundreds more regulations are winding through the rulemaking pipeline as a consequence of the Dodd–Frank financial-regulation law, the Patient Protection and Affordable Care Act, and the Environmental Protection Agency’s global warming crusade, threatening to further weaken an anemic economy and job creation.

The most important consideration as regards these regulations is that, almost to a virtual certainty, none of the major regulations promulgated under Obama could ever have passed Congress to become law - even during the first two years of Obama's administration when Democrats controlled Congress. A partial list of the extra-constitutional regulations and executive actions of Obama's regulatory agencies includes:

- The EPA's decision to regulate carbon dioxide as a pollutant, despite lack of any Congressional authority and in the face of Congress's refusal to pass the proposed energy bill which would in fact have authorized such regulation.

- The EPA's promulgation of the Boiler MACT rules that will cost our nation an estimated $20 billion to reduce certain pollutants emitted from boilers. The regulation was made without reference to health risk thresholds for the pollutants.

- The EPA's promulgation of the Cross State Air Pollution rule requiring 27 states "to cut their sulfur dioxide emissions from 8.8 million tons per year to 2.4 million tons per year (73 percent) and their nitrogen oxides emissions from 2.6 million tons per year to 1.2 million tons per year (54 percent)," at an estimated cost of "up to $120 billion by 2015" and a reduction in the nation’s power supply by more than 55 gigawatts (almost 4 percent), according to the Brattle Group, an economic consulting firm."

- The EPA's promulgation of Mercury and Air Toxics Standards "which could cost an estimated $100 billion by 2017," require modification of over 700 electrical generating plants, and because "it will not be technically possible for some coal-fired power plants to comply, roughly 1 percent of U.S. net electrical capacity will be shuttered."  These new standards were not made in reference to health risk thresholds.

- The EPA, in what can only be described as a war on coal (which provides roughly 50% of our nation's electricity) has through its permitting process, virtually - and unlawfully - shut down all applications for new coal mines. In one particularly egregious case, the EPA cancelled a permit issued in 2007 after it reinterpreted its own regulations.

- The EPA has made yet another power grab, assuming the authority to unilaterally issue fuel standards for vehicles, providing that in 2025, vehicles must get an average of 54.5 mpg.

- The EPA, as part of its rules on biofuels has provided that oil refiners must pay a significant penalty if they fail to mix cellulosic biofuels with their gas.  Cellulosic biofuels, while mandated, are not being produced commercially, thus rendering compliance impossible.  

- The Interior Dept.'s Gulf oil drilling unlawful permatorium in the Gulf after their falsification of a report to justify imposing the permatorium.

- The Interior Dept.'s decision to unilaterally put the eastern Gulf of Mexico, the Atlantic coast, and the Pacific coast off limits for development, effectively banning drilling in those areas for the next seven years.

- The Interior Dept.'s decision to unilaterally cancel 77 leases for oil and gas drilling in Utah.

- The Interior Dept.'s decision to break an agreement with Utah done in settlement of a lawsuit and reinstate an ambitious nationwide plan to unilaterally take more land and ocean territory under federal government control, putting the land off limits for development.

- The FCC power grab, without any grant of authority by Congress, to assume the right to regulate the internet.

- The FCC decision to order the the big wireless providers to sign ‘data-roaming’ agreements with smaller carriers, thus allowing smaller carriers to free-ride on the mammoth investments by the big carriers. "In addition, the FCC made it clear that it is willing to set the price for each data roaming agreement if it doesn’t like what the big carriers are offering–effectively reinstituting price regulation for the most dynamic sector of the economy."

- The DOE's war on Yucca Mountain as a nuclear waste repository that is still continuing. "In 2009, Administration arbitrarily broke federal law and derailed the most studied energy project in American history when DOE announced intent to withdraw 8,000 page Yucca Mountain licensing application with prejudice. American people have paid more than $31 billion (including interest) through percentages of electric rate fees towards the project and taxpayers have footed an addition $200 million in legal fees and over $2 billion in judgments against the DOE for breaking contracts associated with Yucca Mountain."  Note as an aside that Obama's NRC appointee, Gregory Jaczko, did all in his power to thwart the Yucca Mountain project, including quashing an NRC staff report, altering a scientific staff report on the safety of the Yucca site, and withholding critical information from fellow commissioners.  Jaczko, like Holder, still inexplicably retains his position.

- An EEOC letter stating that businesses may be violating a job applicant's rights under the ADA if they require that the applicant have graduated from high school.  

- New DOJ regulations that require, at significant cost, every public pool in America be fitted with a permanent lift for disabled individuals or face stiff fines.

- The NLRB decision to file a frivolous complaint against Boeing for making the decision to open up a plant in right to work South Carolina, thus strong-arming Boeing into a sweetheart deal with the closed union shop plant in Washington.

- The NLRB decision to institute Card Check via the back door, thus dispensing with the right of employees to demand a secret ballot on whether to organize and thus making the union organizing system ripe for coercion and corruption.

- The NLRB, in what poses to be a particularly insidious decision, has approved micro-union organizing of workers holding the same job title in a businesses, regardless whether the majority of employees in the business reject the union.

- The NLRB, in cases where unionizing elections are held, has now provided for "snap elections" by shortening the time frame for such elections to 10 to 21 days after notice to the employers demanding a vote.  This severely prejudices the ability of employers to make the case against unionization among their employees.

- The decision of the National Mediation Board to to make it easier for unions to organize the railroad and airline industries.  "The law, as written by Congress, clearly requires a support of a majority of a group of employees before their employer can be forced to bargain with their union. For 75 years, the NMB interpreted it the same way.  At the AFL-CIO’s request, the NMB changed the rule. There is now no requirement that a union ever demonstrate that it has the majority support of all the employees it will represent.

- The decision of the Dept. of Education to circumvent Congress and make unilateral changes to the No Child Left Behind Law.

- The HHS Mandate that will require religious individuals and institutions who are employers to fully fund free contraception and abortion plan B pills for female employees, irrespective of whether it violates their 1st Amendment rights of conscience.

- An IRS power grab to require that all tax preparers be licensed by the IRS. "The IRS wasn't granted the authority to do this by Congress, they just decided to go for it."

This is out of control and tyrannical.  It is near the polar opposite of what our Founding Fathers envisioned when they drafted our Constitution.  It must end or it will destroy our nation.

How we got here is the story of FDR and a Supreme Court that has utterly failed to defend the plain language of our Constitution. As one Cato Institute expert, Jerry Taylor, pointed out in testimony before Congress in 1996:

Before the New Deal, wholesale delegation of legislative authority to the executive was largely unknown in the United States, at least during peacetime. With the coming of the Great Depression, President Franklin Delano Roosevelt sought sweeping authority to manage the U.S. economy. With the passage of the National Industrial Recovery Act of 1933, he got it. The NIRA authorized industrial and trade associations to draw up codes designed to raise prices and restrict production; if the president found the codes acceptable, he was empowered to immediately issue and enforce them. Upon hearing of the NIRA, Benito Mussolini exclaimed, "Ecco un ditatore!" ("Behold a dictator!")

In 1935 the Supreme Court emphatically rejected the industrial code provisions of the NIRA in A.L.A. Schecter Poultry Corp. v. United States. The Court, led by Chief Justice Hughes, argued that "Congress is not permitted. to abdicate or to transfer to others the essential legislative functions with which it is thus vested." In his concurring opinion, Justice Cardozo famously characterized the industrial code provisions as "delegation running riot." But after Roosevelt's 1937 attempt to subvert the judiciary's independence by enlarging the Court, the Court never again struck down a New Deal statute on delegation grounds. Fear of Court-packing concentrated the mind wonderfully, and the judiciary chose not to stand in the path of the administrative state.

And so it has been ever since. In the 1944 case Yakus v. U.S., the Supreme Court put the final imprimatur on their Constitutional retreat, holding that "Congress could delegate to an executive agent the power to set maximum prices for virtually all goods throughout the economy." They rendered Art. I Sec. I of our Constitution a nullity.

But there was more to come. The final nail in our coffin came with the 1983 Supreme Court decision in Chevron, U.S.A., Inc. v. Natural Resources Defense Council. In that case, the Court granted "extraordinary deference to administrative agencies interpretations of their own authority." The Court held that "when a statute is silent on a particular issue, Congress can be understood to have delegated the power to make the law to the agency." That decision grants deeply non-democratic regulatory agencies vast power - and we can see its effect today in the many power grabs enumerated above in this post.

As Mr. Taylor summed up in his testimony before Congress:

With the judiciary's abdication of its constitutional role, we are left with a legal status quo that effectively centralizes all governing functions in the executive branch agency: Congress passes a statute endorsing a high-minded goal--accommodation of the handicapped, safe drinking water, protection of wildlife--the executive branch agency then issues and enforces the rules governing individual behavior; the judicial branch, for its part, grants "controlling weight" to the agency's interpretations of its own authority. In this way, the modern administrative state comes perilously close to realizing the Framers' definition of despotic government, articulated by James Madison in the Federalist 47: "The accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self- appointed, or elective, may justly be pronounced the very definition of tyranny."

Newt Gingrich oversaw passage of the Congressional Review Act during his term as Speaker. It is a law meant to give Congress the authority to quickly stop burdensome regulations. Unfortunately, it has not proven effective. Under the Act, Congress can raise an objection to a regulation within 60 days of its passage. Only a majority in the House and in the Senate are required to quash the regulation - but only if their joint resolution to quash is signed by the President. That makes the Congressional Review Act virtually useless.

The whole problem is a President governing our nation like a dictatorship through the regulatory agencies that are directly, or in some case indirectly, under his control. Thus the Cong. Review Act must be amended to remove the role of the President, requiring only an act of the elected body with "all legislative powers" to decide whether a regulation is to be approved or quashed.

Further, all regulations should be treated precisely as laws. As it stands today, regulations enjoy what amounts to a presumption of treatment as if they were a duly enacted law by Congress. In other words, it will remain in place unless repealed by an act of Congress that passes the House and a super-majority in the Senate.

Regulations should not be easier for government to create and leave in place than the laws of Congress itself. If an objection to a regulation is raised by a member of Congress, then that regulation should only pass into force - or remain in force - if Congress votes to approve it subject to the same standards as any law. That means it must be approved by a majority in both Houses, and as to the Senate, by a super majority if a filibuster is invoked.

Lastly, the time frame of 60 days to object to a regulation must be removed. Just as all laws are subject to being withdrawn by Congress at any time, so must all regulations be forever subject to Congressional review under the framework above.

The above recommendations would do nothing more than put regulations on the same footing as all other laws in our Constitutional system. Let there be no regulation without representation. Our nation's fate hangs on it.








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Thursday, December 29, 2011

Getting Around Democracy: The Heritage Foundation's Worst Regulations Of 2011

Obama's war on prosperity has resulted in a bumper crop of poisonous regulation this year.  Most, but not all, are the result of regulatory bureaucracies operating outside the constraints of democratic rule and used by Obama to accomplish what he could not get through even a fully Democratically controlled Congress.  Here is the list from the Heritage Foundation of the worst of the worst of it all in 2011.  Particularly as respects the NLRB and the EPA, the list could have been much longer:

1. The Dim Bulbs Rule. As per Congress, of course, for issuing an edict to phase out the incandescent light bulbs on which the world has relied for more than a century. With the deadline looming in 2012, Americans by the millions spent the past year pressing lawmakers to lift the ban which, contrary to eco-ideology, will kill more American jobs than create “green” ones. (Congress evidently overlooked the fact that the vast majority of fluorescent bulbs are manufactured in China.) The 2012 appropriations bill barred the use of funds to enforce the regulation, but it remains in law.

2. The Obamacare Chutzpah Rule. The past year was marked by a slew of competing court rulings on the constitutionality of the individual mandate, the cornerstone of Obamacare. The law requires U.S. citizens to obtain health insurance or face financial penalties imposed by the Internal Revenue Service. Never before has the federal government attempted to force all Americans to purchase a product or service. To allow this regulatory overreach to stand would undermine fundamental constitutional constraints on government powers and curtail individual liberties to an unprecedented degree.

3. The Nationalization of Internet Networks Rule. Regulations that took effect on November 1 prohibit owners of broadband networks from differentiating among various content in managing Internet transmissions. (In other words, the Federal Coercion Communications Commission effectively declared the broadband networks to be government-regulated utilities.) The FCC imposed the “network neutrality” rule despite explicit opposition from Congress and a federal court ruling against it. The rule threatens to undermine network investment and increase online congestion.

4. The Equine Equality Rule. As of March 15 (the Ides of March, no less), hotels, restaurants, airlines, and the like became obliged to modify “policies, practices, or procedures” to accommodate miniature horses as service animals. According to the Department of Justice, which administers the rule, miniature horses are a “viable alternative” to dogs for individuals with allergies or for observant Muslims and others whose religious beliefs preclude canine accompaniment.

5. The Smash Potatoes Regulation. The U.S. Department of Agriculture proposed stricter nutrition standards that would prohibit school lunch ladies from serving more than one cup per week of potatoes per student. Instead, schools would be required to provide more dark green, orange, and dry bean varieties (think kale) in order to foster vegetable diversity. The cafeteria mandate will affect more than 98,000 elementary and secondary schools at a cost exceeding $3.4 billion in the next four years.

6. The Bring on the Blackouts Rule. The EPA is proposing to force power plants to reduce mercury by 90 percent within three years—at an estimated cost of $11 billion annually. A significant number of coal-fired plants will actually exceed the standard—by shutting down altogether. Indeed, grid operators, along with 27 states, are warning that the overly stringent regulations will threaten the reliability of the electricity system and dramatically increase power costs. Just like candidate Obama promised.

7. The Wal-Mart Windfall Amendment. One of hundreds of new regulations dictated by the Dodd–Frank financial regulation statute requires the Federal Reserve to regulate the fees that financial institutions may charge retailers for processing debit card purchases. The prospect of losing more than $6 billion in annual revenue is prompting financial institutions to hike fees on a variety of banking services to make up for the much smaller payments from stores. Thus, consumers are picking up the tab for retailers’ big regulatory score.

8. The Plumbing Police Rule. The U.S. Department of Energy began preparations for tightening the waterefficiency standards on urinals. It’s all spelled out in excruciating detail in the Energy Conservation Program for Consumer Products Other Than Automobiles, which also regulates the efficiency of toilets, faucets, and showers. And refrigerators and freezers, air conditioners, water heaters, furnaces, dishwashers, clothes washers and dryers, ovens and ranges, pool heaters, television sets, and anything else the Energy Secretary deems as electrically profligate. (Urinals also are regulated by the Occupational Safety and Health Administration, which requires at least one urinal for every 40 workers at a construction site for companies with less than 200 employees and one for every 50 workers where more than 200 are employed. The Americans with Disabilities Act also delineates the proper dimensions and placement of bowls.)

9. The Chill the Economy Regulation. The EPA issued four interrelated rules governing emissions from some 200,000 boilers nationwide at an estimated capital cost of $9.5 billion. These boilers burn natural gas, fuel oil, coal, biomass (e.g., wood), refinery gas, or other gas to produce steam, which is used to generate electricity or provide heat for factories and other industrial and institutional facilities. Under the so-called Boiler MACT, factories, restaurants, schools, churches, and even farms would be required to conduct emissions testing and comply with standards of control that vary by boiler size, feedstock, and available technologies. The stringency and cost of the new regulations provoked an outpouring of protest, including 21 governors and more than 100 Members of Congress. On May 18, the EPA published a notice of postponement in the Federal Register, but the regulations remain on the books.

10. The Unions Rule Rule. New rules require government contractors to give first preference in hiring to the workers of the company that lost the contract. Tens of thousands of companies will be affected, with compliance costs running into the tens of millions of dollars—costs ultimately borne by taxpayers. The rule effectively ensures that a non-unionized contractor cannot replace a unionized one. That’s because any new contractor will be obliged to hire its predecessors’ unionized workers and thus be forced by the “Successorship Doctrine” to bargain with the union(s).

(H/T Daily Gator)

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Tuesday, January 18, 2011

Obama Tries On A Centrist Fig Leaf

Reading Obama's op-ed in the WSJ today, the cognitive dissonance almost made my head explode. In his op-ed, Obama promised to make our regulatory bureaucracy business friendly by making some cosmetic changes. It was surreal. It was tragic-comic. It was like reading an op-ed from Kristin Davis on the benefits of virginity and chastity. It was like reading an essay from Carol Yager on diet tips.

When Obama came into office, we were already one of the most regulated countries in the world. The costs of complying with the massive regulation effected all aspects of our economy and, in the words of Jeff Pope, "destroyed our manufacturing sector." Last year, the SBA estimated that it had cost each small business in America in excess of $10,000 per employee to comply with our regulatory scheme. And not a dime of that added any value to the goods or services those businesses produced.

That regulatory burden has only gotten worse under Obama. More importantly, Obama has waiting in the wings a regulatory tsunami ready to wash over us. First up is The Dodd-Frank Financial Reform Act, which does everything but address the causes of our financial melt-down. In the words of Charles Krauthammer, it gives:

. . . the government unprecedented power in the financial marketplace. Its 2,300 pages will create at least 243 new regulations that will affect not only, as many assume, the big banks, but just about everyone — including, as noted in one summary (the Wall Street Journal), “storefront check cashiers, city governments, small manufacturers, homebuyers and credit bureaus.”

And that of course pales in comparison to Obamacare, which not only creates a massive new regulatory scheme, but also places it beyond challenge in the Courts, making the administrators into petty dictatorships:

The new law creates 68 grant programs, 47 bureaucratic entities, 29 demonstration or pilot programs, six regulatory systems, six compliance standards and two entitlements.

Getting that massive enterprise up and running will be next to impossible. So Democrats streamlined the process by granting Health and Human Services Secretary Kathleen Sebelius the authority to make judgments that can’t be challenged either administratively or through the courts.

And that is only the new regulatory bureaucracies. The old one's have been no less radical under the guidance of Obama. The EPA, with their decision to regulate carbon dioxide despite Congress's refusal to pass cap and trade, is now threatening our energy infrastructure and, with it, our entire economy. The FCC, with their decision to take over regulation of the internet on the ostensible grounds that, at some point in the future, there might be problems with internet access, threatens to choke off economic growth in that nascent sector. Then there are the agencies under Sec. of the Interior Ken Salazar. He is using their regulatory power to destroy our domestic oil industry and to put ever more of our land and coastal regions off limits to mining and drilling. Given that we rely on coal for most of our electricity and given that our purchase of foreign oil accounts for 62% of our annual trade deficit, that seems suicidal.

So how did we come to this? Art. I Sec. I of our Constitution provides that "all legislative powers" of our federal government are "vested in . . . Congress." The Constitution makes no provision for regulatory agencies, let alone the unilateral creation of regulations by those agencies that function with the force of law. This is not to suggest that such agencies are unconstitutional; clearly, after a century of jurisprudence, that question has been asked and answered. But in our current situation, Congress is no longer the sole - or arguably even the most important - federal legislative body. We now far more resemble the EU, an anti-democratic socialist bureaucracy, than we resemble America circa 1783. It is an extra-constitutional travesty.

Obama, in his op-ed today, indicates no intention of changing this trajectory for massive new regulations. He indicates no intention of reigning in the EPA, the FCC or Ken Salazar, regardless of how destructive they are to our economy. So just what is he doing? Obama used the op-ed to announce that he has issued an Executive Order directing his vast regulatory bureaucracy to . . . :

. . . ensure that regulations protect our safety, health and environment while promoting economic growth. And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive. It's a review that will help bring order to regulations that have become a patchwork of overlapping rules, the result of tinkering by administrations and legislators of both parties and the influence of special interests in Washington over decades.

This as the centerpiece of Obama's effort to portray himself as a new found centrist? It defies belief. It is throwing a new coat of paint on a rusted out 1980 Yugo and trying to sell it as a 2010 Ferrari. It is pure con job from a shameless scam artist. It was like the sales job he tried to do on us two years ago, when, after signing the $787 billion Stimulus, he held out his decision to order the minuscule savings of $17 billion as proof that he was a deficit hawk.

Nothing is going to happen to turn around the business climate in America until Obama is voted out of office in 2012 - and God help our country if he is not. That said, there are two steps that Congress should take immediately to reign in the out of control regulatory bureaucracy. Step one is a law requiring Congress to affirmatively approve each and every new regulation before it becomes binding. Step two is a law that sunsets every regulation every ten years, requiring Congress to debate them and vote on whether to reauthorize them. Only that would restore us to the balance that our Founders had in mind when they drafted our Constitution.

Others Who Have Posted On This Topic:
Q&O - Just words? Obama on a “21st Century regulatory” regime
JustOneMinute - One Of These Is Not Like The Other
Legal Insurrection - Obama Brought The EPA To Joe Manchin's Cap & Trade Fight
Michelle Malkin - The Mother Of All Job-Stifling Regulations
Patterico - Obama Announces "Smart" Regulations
The Foundry - Obama on Overregulation: Less than Meets the Eye
Stop the ACLU - Obama Now A Regulation Slayer? Hardly
City Journal - Backdoor Big Government

Welcome, Larwyn's Linx readers.

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Monday, February 25, 2008

The EU Regulatory Burden

A recent report shows the soaring costs to the UK from over-regulation, with 2/3rds of it imposed or driven by the EU. In the last year alone, the cost of complying with new regulations rose an additional £10 billion ($20 billion). And the EU is just getting started.



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I blogged here of the tremendous costs that EU membership is imposing on the people of Britain. One portion of that bill is the direct and indirect cost of EU regulaitons.

The technocrats in Brussels are hardly evil people. But they suffer under the leftist's delusion that the answer to problems is ever more government regulation. Nirvana is possible with just that next bit of legislation. And to call some of it simply over-regulation would be too kind, such as the recent passage of legislation that will reduce Britain's carbon footprint by less than two hundreths of one percent, but will cost UK businesses £250 million pounds in lost business.

Combine that mindset with an EU government where democracy is minimized in a government form that provides no checks and balances, no way for any party to review the impact of new regulations once they are imposed by the technocracy, and you have a recipe for catastrophic over-regulation. As Der Spiegel put it, the EU is attempting to "perfect a system of total control."

This from Christopher Booker at the Telegraph:

A shock-horror report in last week's Sunday Times, based on the latest annual "barometer" from the British Chambers of Commerce (BCC), showed that the cost of new regulations to UK businesses, according to Government figures, had soared last year by a record £10 billion.

Their total cost since 1998 is a staggering £66 billion. . . .

. . . [T]he origin of these regulations were clearly apportioned between the EU and our own Government. And by far the most costly examples, such as the regulations on working time (£16 billion), vehicle emissions (£9 billion) and data protection (£7 billion), all originated from Brussels.

Of the top 10, eight were based on EU directives and the remaining two both had a strong EU dimension. These 10 alone imposed a total cost of £43 billion. . . .

Read the article.

The EU is not completely out of touch. They have, of late, decided to withhold imposing some of the more economy busting and questionable regulations, even after they have been rubber-stamped by the European Parliament. That said, but for a few such acts, the regulatory burden combines with mismanagement and grows largely unabated. One wonders which EU member state will be crushed under the burden first. I don't know, but I do know that in the UK, the pinch is just really starting to be felt.


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