Cost Per Regulator Summary

Friday, absent Congressional and Presidential action, the Budget Control Act’s Sequester kicks in, forcing across-the-board spending cuts of $1.1 trillion spread out over nine years, with $85 billion cuts coming in 2013.  Without question, this reduction in federal spending will impact the economy, particularly as we measure it.  Government spending is a component of aggregate demand, and reduced demand in the economy will have its consequences.  Also, government spending is a component of Gross Domestic Product (about 23% of it), and since recessions are indicated (in part) by declining GDP, a cut in federal spending increases the probability of an indicated recession by the simple …
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This week, the House Committee on Government Oversight and Reform released a new Staff Report entitled Continuing Oversight of Regulatory Impediments to Job Creation:  Job Creators Still Buried by Red Tape. Among other significant data, the Staff Report found that: From 2010 to 2011, the number of final rules issued by federal agencies rose from 3,573 to 3,807—a 6.5 percent increase.  During that same time frame, the number of proposed rules increased 18.8 percent; The published regulatory burden for 2012 could exceed $105 billion, according to the American Action Forum, headed by a former director of the Congressional Budget Office; Analysis from the Heritage Foundation …
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Earlier today, the Subcommittee on Communications and Technology of the House Energy and Commerce Committee held an oversight hearing on entitled “The Budget and Spending of the Federal Communications Commission.”  Given the growing size of the federal bureaucracy, conducting this sort of oversight is indeed welcome news. In his opening statement, Committee Chairman Greg Walden noted that “Last year, the FCC was given a budget of $424.8 million, and the FCC has reported that it can maintain current services with a budget of $421.2 million.  Although that’s less than a one percent decrease, it’s a start, and I appreciate the work of the FCC to …
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At the State of the Union earlier this week, President Obama repeated his professed goal implementing meaningful regulatory reform.  For example, while the President noted that “we need smart regulations to prevent irresponsible behavior”, the President also again recognized that “[t]here is no question that some regulations are outdated, unnecessary, or too costly.” To support his “walking the walk” about meaningful regulatory reform, the President boasted that “I’ve approved fewer regulations in the first three years of my presidency than my Republican predecessor did in his.”  Mr. Obama also boasted that “I’ve ordered every federal agency to eliminate rules that don’t make sense. We’ve already …
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