President Obama has just committed himself, through an Op-Ed piece in the Wall Street Journal, to an executive order that
"... requires federal agencies 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 And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive.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."
Of course, as an economics instructor, I am always pleased when the government reviews its regulatory watch for the betterment of the economy. But I do wonder if this "jobless recovery" can just be changed to a recovery with less oversight. How long would it take to change the regulatory system? Can it be done quickly and efficiently so we can get 15 million people that are willing and able to work back to work? The President gave a poignant example of two agencies working somewhat against each other.
"For instance, the FDA has long considered saccharin, the artificial sweetener, safe for people to consume. Yet for years, the EPA made companies treat saccharin like other dangerous chemicals. Well, if it goes in your coffee, it is not hazardous waste. The EPA wisely eliminated this rule last month.".
That makes sense...I think. Is saccharin bad for me? If it is, maybe they should just ban it. Luckily, I like my coffee black. Of course, I wonder, if costs and benefits are being considered and then I read this quote:
"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"
How exciting is that?
President Obama continues to write that the future of regulation will mean more power to the consumer, less paperwork, decreased burdens on small businesses, one standard for car fuel efficiency instead of 50, and FDA rules for medical devices to list a few. All of this sounds great but I am still wondering will we ever actually do it?
To wrap this long blog up the President continues to talk that loveable econ talk.
"Yet according to current estimates of their economic impact, the benefits of these regulations exceed their costs by billions of dollars (consumer surplus?)."
As I read the article I was inspired to cheer for self regulation of big government then I realized--that doesn't make sense!
The President ends the story with this quote "We can make our economy stronger and more competitive, while meeting our fundamental responsibilities to one another."
I sure hope so and SOON! By the way, the President's move to the center of the political spectrum has moved his approval back into the majority (click here).
