Posts belonging to Category Regulation/Deregulation



AFL-CIO President: Government Should Never Improve Business Regulation Balance

In a stunning example of truthfulness, AFL-CIO President Richard Trumka gives the perfect reasoning to why government is inherently inefficient.  While discussing the President’s recent pledge to review business regulations for balance (here), Mr. Trumpka said (here via The Hill):

…the White House’s planned government-wide review of regulations could end up being a “distraction” for agencies already dealing with scarce resources.

“To the extent that analysis draws them away from enforcing the regulations and protecting the health and safety of workers, we think it’s a distraction,” Trumka said. “We think we would have rather not seen it.”

And there you have it – since the incentives to pass and sustain business regulations for the AFL-CIO are political and not about the workers, business regulation becomes and end in itself; with the means already justified.

Short sighted of course, as getting rid of regulations which work to stall economic growth (regardless of  the regulations’ initial intentions) would help more people get hired.

Additionally, the reduction in the number of regulations could in fact realign the scarce resources dealing with these issues towards the most important regulations instead of being bogged down with the more political regulations.

But when the incentives are more about political power than worker protection, this is the end result.  Just as Mr. Tumpka stated,   even working towards improving the balance between economic growth and worker protections, is by itself, by definition, wrong.

Obama Calls For Regulations’ Review: Is this some kind of a joke?

President Obama is planning to sign an executive order to review business regulations (via LA Times here):

WASHINGTON (AP) — Taking another step toward mending his relationship with the business community, President Barack Obama will order a review of federal regulations with an eye toward getting rid of those that stifle job creation and hurt economic growth.

Upon hearing this news, I was immediately reminded of the Simpsons’ episode.  The episode is about NASA, who having problems with funding, decides to put an average man in space for marketing purposes.  The press conference (here):

Scientist: Ladies and gentlemen and members of the press.  I’d like to
           present the new generation of NASA astronauts: the average
           American.
            [Curtain rises to show Homer wearing a "Hail to the Chef"
           apron and Barney dressed as a golfer
]
Reporter: Jim Wallace, Associated Press.  [clears throat] Is this a
           joke?
Scientist: [cheery] Far from it, Jim.  One of these men will prove space
           travel is within the reach of the common man.
Reporter: Toby Hunter, Minneapolis Star.  No really, is this a joke?
Scientist: No, Toby, and no more questions about whether this is a joke.
            [Everyone lowers their hand, dejected]

Please don’t misunderstand – I’m hoping, like a lot of people, that the President is serious about this.  However, almost every single action taken by this administration shows an absolute love of controlling by regulations, even when no obvious reason for doing so exists.

This is after all the same President who gave us an executive order which prevented anyone from drilling for oil offshore due to one oil spill on a platform owned by BP (DA post here). 

This was all prior to the government report released late last year, which held BP accountable, but even after blaming BP for the entirety of the incident, they announced a month later continued blanket regulations against an all of the industry.

Even the President’s own fact finding commission is wondering what many others questioned before – what is this continued ban is supposed to fix?  They plan to press the administration on the issue soon.

And that’s just regulations for a small part of the energy industry.  This is also the same administration who pushed for financial reform.  Financial reform which as pushed before they had anyone had any idea what took place.  The reform which included controls on market segments which are known to have little to no impact on the financial crisis like hedge funds, derivatives, executive compensation and more (here & here).  (more…)

Napolitano to US: we’re “objectively safer” – Evidence? Nil

Janet Napolitano - Logically Impaired

Janet Napolitano - Logically Impaired Secretary of Homeland Security

On CCN’s State of the Union show, US Secretary of Homeland Security Janet Napolitano fielded questions about security in the nation’s airports and in particular the more controversial measures put into place in 2010. 

In what must be an attempt to alleviate concerns from passengers and Americans to potential security threats, she let the country know (here via RealClearPolitics):

The new technology and the pat-downs are “objectively safer for our traveling public,” said Napolitano, adding she’s always looking to improve the security systems in place….

Forgetting for a second that there is evidence to the contrary (article con’t):

…Napolitano also dismissed a recent news report about major airports failing secrets tests designed to get contraband such as guns and knives past security screeners. The report said some airports had a 70 percent failure rate…

& ignoring the fact that her only argument against this evidence is that they’re doing things differently, the last excuse for those attempting to shrug off real failures, (article con’t):

…”Many of them are very old and out of date and there were all kinds of methodology issues with them. Let’s set those aside,” she said on “State of the Union” on CNN. “We pick up more contraband with the new procedures and the new machinery.”…

We can look at the pure logic of the phrase “objectively safer” and ask whether there’s any reason to be able to use it and the answer is clearly no(more…)

The Party of NO

Well, the verdict is in. The Republicans are being cast as the party of no.  The party without ideas.  The party of obstruction.

Please make no mistake about it, this marketing push isn’t really about obstruction, but about the upcoming elections.  Just as President Clinton did brilliantly prior the 1996 elections when he cast all Republicans as following Newt Gingrich and obstructing spending laws, the Obama administration is moving forward in much the same pattern.

This is possible because the White House, regardless of occupant, has historically been able to control the news cycle.  In my opinion, this should be an indictment on journalism as a whole when alternatives which exist aren’t being reported, but simply put:  when the President talks, news happens.  When your normal representative talks, you’re lucky if you even hear about it.

It worked during the Clinton Administration on spending, it worked during the Bush (43) Administration on the Patriot Act, & it certainly might work again this time. Irregardless, the campaign is back and in high gear (here via USA Today):

…”Too often, the Republican leadership in the United States Senate chooses to filibuster our recovery and obstruct our progress,” Obama said. “And that has very real consequences.”…

Or here via NY Times blog, here via WaPo, & on and on and on…

From a critical point of view however, obstructionist should not automatically be a pejorative.   Without analyzing what exactly is being obstructed, this is little more than name calling.

As an example, if say in the 1940s Congress was actively trying to “obstruct” the internment of thousands of innocent Japanese-Americans, this would not only be a moral good, but any thoughts to compromise solely to be seen as a non-obstructionist would be wrong.  What would be a compromised alternative?  House arrest?

Additionally, we have to be on the lookout for the differences between the marketing of bills and their actual language.  Think of the new health care legislation.  President Obama’s promises of more health care for all at cheaper prices, simply don’t seem to be fulfilled by the 2500 page law passed… or maybe they are being fulfilled, but like the Patriot Act, no one really knows what the new legislation actually means (here via Cato):

…The Patient Protection and Affordable Care Act represents the most significant transformation of the American health care system since Medicare and Medicaid. It will fundamentally change nearly every aspect of health care, from insurance to the final delivery of care.

The length and complexity of the legislation, combined with a debate that often generated more heat than light, has led to massive confusion about the law’s likely impact….

Or on yesterday’s Meet The Press Rep. Van Hollen stated (transcripts here via MSNBC):

…The frustration is there are lots of important bills to push for jobs that are sitting over in the Senate.  But it’s not the fault of the Democratic leadership in the Senate.  I mean, frankly, you know, John Cornyn and his allies have been trying to block a whole lot of very important jobs measures.  We in fact sent a piece of legislation over very recently that would remove these perverse tax incentives to ship American jobs overseas, that give American corporations a bonus if they ship American jobs overseas….

Just like health care, the basic idea that our representatives are working on private job creation incentives is a good one.  But just like the Obama Administration’s promises on health care, Rep. Van Hollen is selling us a job creation bill which has little chance of actually creating jobs.

To translate – what they mean by “removing incentives” is to increase taxes on businesses who outsource.  Now, some may want this to happen for various reasons, but the economics are pretty straight forward.  Tax increases have never increased jobs & forcing a tax such as this could actually result in companies simply moving their head quarters as well.

To be fair, there are bills I don’t believe the Republicans should block, for instance the extension on unemployment benefits (though it seems likely to pass soon: here via The Hill).

Yes, the point isn’t that the Republicans are doing the right thing and the Democrats are failing at every single step, the point is only intended to remind us of the old saying about representative governance:

The people will get the government they deserve.

& so long as we allow marketing campaigns to have more force in elections than critical analysis does, we will likely continue to be disappointed.

Infinite Monkey Theorems 20100713

Come on…. we can’t find any good justices to nominate to SCOTUS?  This is what… the third (including the previous administration) uninspired justice nominated in just 5 years.

For such a prestigious and life long appointment, we should expect much better (via Cato here):

Elena Kagan, President Obama’s nominee for the Supreme Court, seemed to shock many people when she dodged questions about the Declaration of Independence during her testimony before the Senate Judiciary Committee…

DA posts here & here

Via Freakanomics here, which will hopefully put to rest the idea that nurses go on strike to “help” patients, from the NBER paper:

…Controlling for hospital-specific heterogeneity, patient demographics and disease severity, the results show that nurses’ strikes increase in-hospital mortality by 19.4% and 30-day readmission by 6.5% for patients admitted during a strike, with little change in patient demographics, disease severity or treatment intensity….

Robert Reich via Salon.com here demonstrates once again how much politics effects his economic analysis.  According to him, this whole economic mess, including a potential backslide can be blamed solely on deregulation:

…starting in the late 1970s, and with increasing fervor over the next three decades, government did just the opposite. It deregulated and privatized. It increased the cost of public higher education and cut public transportation. It shredded safety nets…

Which he believes is causing greater wage disparities:

…We’re back to the same ominous trend as before the Great Recession: a larger and larger share of total income going to the very top while the vast middle class continues to lose ground….

Because with deregulation, of course, companies can become EVIL:

…Companies were allowed to slash jobs and wages, cut benefits and shift risks to employees (from you-can-count-on-it pensions to do-it-yourself 401(k)s, from good health coverage to soaring premiums and deductibles)….

I submit what Mr. Reich fears is freedom – freedom of business owners to hire and fire as they wish, freedom of employees to change jobs easily (401K allows this, pension does not), just freedom.

Secondarily, you can see in his writing that the only thing the government has ever done wrong, is by not getting involved enough.  He doesn’t mention government meddling, deficit spending, enormous new health care expenses, entirely new federal agencies which more money will be needed, idiotic regulations like a moratorium on all oil drilling due to one company’s failure….

Nope, for Mr. Reich, it’s all because the government hasn’t taken enough control over the little people.

Via Cato here, more news on the Obama Administration’s transparency:

The Social Security’s trustees’ annual report is, by law, supposed to be published by April 1. This year, however, the trustees have postponed its release indefinitely. The program’s financial condition continues to remain hidden from public view — and by many accounts will continue to be so until the end of the fiscal year….

Wonder if Reich views this as an issue?

Infinite Monkey Theorems 20100701

More bad news for Obama & the Democrats for 2010 elections.  Via The Atlantic here:

Chris Cillizza’s Morning Fix reports new data from Gallup showing that independents now favor a generic Republican candidate for Congress over a generic Democrat by 12 points….

& as is continually the case with this congress, more bad news for freedom.  Via The Hill here:

The 30-second campaign ad could become a thing of the past for third-party groups if the Democrats’ campaign finance legislation becomes law.

Media strategists argue the new disclosure requirements would eat into the majority of their ad time….

& while we’re talking about lack of freedom…. what might Kagan do about this “disclose” act?  Via Reason.com here:

As solicitor general of the United States, Elena Kagan argued in front of the Supreme Court that the federal government had the constitutional authority to ban certain political pamphlets. She also strongly implied that some political books, if they were partisan enough, could also be censored…..

Does is matter that she’s against free political speech?  Unlikely…. via Yahoo News here:

…Kagan’s performance in the Judiciary Committee drew praise from Democrats and compliments even from some critics, putting her on a path to confirmation by the full Senate sometime in July.

“She will be confirmed. I believe she will be confirmed,” said Republican Orrin Hatch, a member of the Judiciary Committee, predicting there would be at least some Republican support…..

& least we forgot, there’s still an oil spill…. which is being screwed up by the same government that is promising to “fix” healthcare….  Via The Heritage Foundation here, all kinds of people are offering help, but we’re still considering it:

In total, there have been 27 countries and 5 international organizations offering boom, dispersants, skimmers, vessels, bird rehabilitation equipment as well expertise. Along with the other important action items for the administration to undertake, accepting international assistance must be a more urgent priority. The Department of State has a chart that lists the equipment and expertise sitting on the sidelines with most of the status orders “under consideration.” Owners of the equipment have been rapid in their response to government queries but the equipment remains idle. It simply needs to be better….

Not to mention the economic killing impact the asinine moratorium is having:

Meanwhile, the Gulf continues to suffer. It’s not just government incompetence when it comes to the environmental cleanup; the administration’s policy decisions are making the economic harm much worse – especially the offshore drilling moratorium. Although the ban was only meant to affect those rigs operating in water 500 feet or deeper, it has led to a de facto ban on shallow water drilling….

Butler said that only one of his four drill rigs are operating; all four were drilling before the spill. Spartan has six contracts that would put his entire fleet back to work, but he can’t get going until the permits come through, he added. The week before last, Butler said he had to lay off 72 employees. Come Tuesday he’ll have to let another 140 go. “That’s 140 families, is how I look at it,” Butler said….

Not only incompetence in the clean-up, idiocy in quickly implemented, but poorly thought out regulations (DA post here), The Atlantic takes all this and poses an interesting moral question here:

In this video from Climate Desk partner Need to Know, Atlantic correspondent and oil expert Lisa Margonelli talks to Jon Meacham about halting drilling in the Gulf. She explains her view that Americans don’t have a right to drive cars and use gasoline unless we’re willing to drill for it in our own backyard….

For good news – research conducted on parents and children in reference to video games demonstrates that most parents actually don’t need government help.  Via The Technology Liberation Front (here):

  • 93% of the time parents are present at the time games are purchased or rented
  • 64% of parents believe games are a positive part of their children’s lives
  • 86% of the time children receive their parents’ permission before purchasing or renting a game
  • 48% of parents play computer and video games with their children at least weekly
  • 97% of parents report always or sometimes monitoring the games their children play
  • 76% of parents believe that the parental controls available in all new video game consoles are useful

It might be scary to those in government who are continuing to try to push more laws concerning how parents raise their children as it discounts the need for those laws, but for us normal folk – it gives us what we see everyday:

Once again, these findings illustrate that parents are parenting!

White House To Freedom: You’re just sooooo 1800

It should be no surprise to those who watch, but just know:  the tide against freedom is continuing.

Today – it’s the DISCLOSE Act, meant to remove the freedom enhancing SCOTUS decision earlier this year (via the Atlantic here):

…The DISCLOSE Act, aimed at addressing the Supreme Court’s Jan. Citizens United v. FEC ruling by requiring additional campaign finance disclosures from outside organizations that can run political advertisements, ran into snags last week….

What is this wonderful legislation you ask (here via ABC News)?

…A pending piece of legislation known as the Disclose Act would require the heads of companies, unions and nonprofit groups to personally appear in any sponsored political ads and endorse the message. It would also require them to reveal the names of the top five donors who helped foot the advertising bill….

Which seems like a solution a Senator might have picked up from visiting an elementary school, but the reality is the Disclose act is an incredible move against free speech.  There are some complaints about the political nature that are indeed worth noting:

…But House Democrats, eager to pass the bill and avoid a fight with one of Washington’s most powerful lobbies, have agreed to exempt from the new rules a small but highly influential group of organizations that most notably includes the NRA….

Obviously excluding certain, influential lobbying groups for tighter rules is a no-no, but the real danger is losing the idea of anonymity with reference to free speech.

The objections come from the usual sources – Cato (here).  They note that while proponents of the bill claim to resolve these ills:

Rep. Price cites three harms from such speech: “the opportunity for corporations, unions and associations to dominate the playing field, intimidating public officials and drowning out the candidates’ own messages.”…

That in reality:

…Notice that these alleged harms are caused by the speech itself and not by the fact that the speech might be anonymous….

Yes indeed, what Senators and the White House is claiming is that by knowing exactly who wrote message X, or even who funded message X, that you now understand more about message X than you would’ve otherwise.   Which works well on a micro level, say arguing on the play ground & when you start losing you can just yell out “liar” or “stupid”, but in real life – for those seeking the best we can hope for, the messenger is less important overall than the message itself.

Don’t misunderstand – pointing and laughing at hypocrites who tell us what to do when they refuse to do so is funny, amusing, and a good waste of time, but ultimately irrelevant to whether the points they made were indeed true.

The odd part about this… it’s likely to die solely because of the exemptions and not because it’s an attack on free speech… but in case it does contain longevity, here’s the ACLU’s thoughts as well (via Reason.com here):

1. The DISCLOSE Act fails to preserve the anonymity of small donors, thereby especially chilling the expression rights of those who support controversial causes….

2. The DISCLOSE Act would chill not only express advocacy on political candidates, but also issue advocacy….

3. The DISCLOSE Act imposes impractical requirements on those who wish to communicate using broadcasting messages….

4. The DISCLOSE Act imposes unjust restrictions on contractors, TARP participants and corporations with minimal foreign participation.

Wait….. You mean Obamacare was a lie?

For some, it might be very disconcerting news to learn that internal documents from the Obama administration predicted the exact opposite of what they were publicly selling (here):

Internal administration documents reveal that up to 51% of employers may have to relinquish their current health care coverage because of ObamaCare….

Publicly however…. in speech after speech we were told things like, you won’t have to give up your existing coverage even while internal documents predicted:

…The “midrange estimate is that 66% of small employer plans and 45% of large employer plans will relinquish their grandfathered status by the end of 2013,” according to the document.

In the worst-case scenario, 69% of employers — 80% of smaller firms — would lose that status, exposing them to far more provisions under the new health law….

I’m unsure what the machinations coming will be from the White House – something along of the lines of this was only one report taken out of context – likely enough to allow true believers to sigh and continue to support this president.

Either way – this really doesn’t change much in the way of the facts pertaining to health care reform.  The bill is going to be a disaster for the US & if these policies are allowed to fully mature, this will go down in history as a major mistake that the public should’ve prevented.

It wasn’t all that difficult to see what they were selling couldn’t possibly contend with reality.  When people were told by their leaders that this reform would increase demand, increase regulations, and yet still decrease costs they could’ve easily spotted it for the scam it was.

Instead, the average citizen plodded along and by default told their leaders not to stop this.  They told them in polls they hated it, but didn’t want it prevented.  They tell them in polls today they hate it, but don’t want it repealed.  They told them when few wrote – please stop this.

No – the only thing this “new” information tells us is that the government’s own reports confirmed what many independent sources were saying & this administration, cloaked in the mantle of transparency, hide this information from the public and told a completely different story about the legislation when asked.

Maybe this will move some fence sitters against Obamacare and maybe this can be used as motivation to push back some of the legislation, but the truth is we the people failed the day the law was signed.