Obama's regulatory flood is drowning economic growth

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    Aug 29, 2011 4:52 PM GMT
    For as much many people may ridicule the GOP and their candidates, there are a few underlying truths as to what it may not matter - and that's Obama's performance.


    One doesn't have to look far for an explanation of why the economy grew at an anemic 1 percent rate during the last quarter.
    Businesses large and small face more uncertainty today about the federal regulatory environment than at any point since the New Deal radically increased the role of the government in the nation's economy. Thanks to Obamacare and the Dodd-Frank financial reform law, plus President Obama's decision to use bureaucratic regulation to start major initiatives like cap and trade that Congress refused to pass, the federal bureaucracy has been drafting new regulations at an unprecedented pace. Seeing this tsunami of red tape flooding out of Washington, company owners and executives wisely opt to delay new hires and investments until they have a clearer idea how much their already huge compliance costs will increase and how the markets will be warped by changes mandated by the bureaucrats.

    As House Speaker John Boehner noted earlier this week in a blog post, "a simple scan of the Obama administration's current regulatory agenda indicates that the administration currently has 4,257 new regulatory actions in the works, of which at least 219 will have an economic impact of $100 million or more. That is an increase of nearly 15 percent over last year, when a similar search showed 191 new economically significant regulatory actions by the administration to be in the works." Even before those 4,257 new regulations go into effect, the Federal Register shows more than 81,000 pages of regulations, which result in compliance costs in excess of $1.7 trillion, according to the Competitive Enterprise Institute's "Ten Thousand Commandments: How much regulation is enough" report for 2010.

    But Boehner points to an even scarier fact about this Obama-inspired avalanche of new federal regulation: By the government's own estimates, at least one of the multiple new major rules being proposed by the U.S. Environmental Protection Agency could cost as much as $90 billion. Some independent analysts put the cost of new EPA regulations at more than $1 trillion. Boehner last year asked Obama to provide Congress with a list of all proposed regulations with estimated costs of $1 billion or more. Obama never produced the requested list, so Boehner is again asking the president to provide it to Congress. We hope the speaker isn't holding his breath waiting.

    Nobody expects Obama to instruct the bureaucrats at the EPA and elsewhere in the executive branch to cease and desist, which means there will be no significant economic growth in this country between now and the 2012 election. Unless the EPA delays enforcement of several of its most draconian new rules, unemployment may actually increase between now and the election. It's almost as if Obama thinks the dead hand of regulation -- with all of the economic stagnation that follows -- is good for us.
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    Aug 30, 2011 3:08 AM GMT
    southbeach1500 saidThis is the key:

    the federal bureaucracy has been drafting new regulations at an unprecedented pace.

    Unknown, nameless bureaucrats who know absolutely nothing about the things they "regulate" are churning out thousands of pages of regulations each week... stupid things like "spilled milk is a hazardous waste spill" and the infamous incandescent light bulb ban.

    I do agree that a great many of the regulations go too far and often don't work in real life settings.

    But the problem now, is there are no where near the US normal of 'orders' for goods and services, which creates the need for business expansion and hiring workers. NO DEMAND equals NO NEED FOR WORKERS MAKING GOODS OR PROVIDING SERVICES. Regulations do not curb demand for products/goods or services, someone is putting the cart before the horse.

    We need to create jobs by investing in infrastructure projects all over the US, Once people are going back to work, then money will start recirculating in the economy, workers will buy things they or their family needs, orders/demand for products/goods and services will increase, and more people will be hired to make more products/goods and services, those people will spend on products/goods and services, then more people are hired and the cycle increases reversing the downward spiral we are now in. By the time the infrastructure projects are done, the economy has started to move on its own, its worked before, it can work now. Once the economy is moving more taxes are paid, the debt comes down and the devicits come down.

    but I digress, regulations strangling business right now is not holding back businessed from investing and hiring people. DEMAND IS WAY DOWN, and that is the problem.