Showing posts with label Dodd-Frank. Show all posts
Showing posts with label Dodd-Frank. Show all posts

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

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