Category: Public Policy

red-tape-govt-300x300Of all the executive orders issued by President Obama, one of the most important is one most people never knew existed: Executive Order 13563 – Improving Regulation and Regulatory Review .

In the order, the president requires federal agencies to perform a “retrospective analysis” of existing regulations to evaluate their efficiency and effectiveness:

(a) To facilitate the periodic review of existing significant regulations, agencies shall consider how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned. Such retrospective analyses, including supporting data, should be released online whenever possible.

(b) Within 120 days of the date of this order, each agency shall develop and submit to the Office of Information and Regulatory Affairs a preliminary plan, consistent with law and its resources and regulatory priorities, under which the agency will periodically review its existing significant regulations to determine whether any such regulations should be modified, streamlined, expanded, or repealed so as to make the agency’s regulatory program more effective or less burdensome in achieving the regulatory objectives.

This executive order was issued four years ago—in January 2011. So how is that evaluation process going?

In 2014, the George Washington University Regulatory Studies Center launched a yearlong effort to evaluate high priority proposed rules to “determine whether it was designed in a manner that would make its outcomes measurable ex post.” Unfortunately, their findings are not at all surprising:
(more…)

Climate-Change-Report-23For the past few years Pope Francis has made it clear he considers climate change to be an essential issue of concern. In his recent encyclical, Laudato Si’, he wrote that climate change is one of the “principal challenges facing humanity in our day.” Has Francis been able to convince American Catholics to share his concern?

Maybe so. A new Pew Research survey shows that Catholics, along with people who are unaffiliated with major religions, are more likely to agree with the pope’s position than are Protestants in the U.S.
(more…)

taylor-swift-moneyMargaret Thatcher famously said the problem with socialist governments is that, “They always run out of other people’s money.” Unfortunately, that’s true for almost all governments. Even more unfortunate, though, is that some people refuse to believe that government can ever run out of other people’s money.

Some people claim, for instance, that the government can continue to borrow and spend (and should do more of both since interest rates are currently low) since the national debt is not a problem. Take, for example, Matthew Yglesias, who writes about economics for Vox. He famously said (and repeats far too often) that, “the U.S. government can never run out of dollars. Unlike you, or the company you work for, or the town you live in, the federal government prints dollars.”

Unpacking the economic ignorance embedded in that claim would take all day. So let’s set aside the question of how the government will be able to pay off the debt in the future and focus instead on the part of the debt the government pays right now: interest.

How does government pay that interest? The answer, of course, is with “other people’s money” (i.e., taxes). Interest on the debt is paid out of the tax dollars that are taken from the American people. That is money that comes out of our pockets today to pay for money we borrowed in the past. And it’s a lot of money.
(more…)

pharma-pills-and-moneyLast month Turing Pharmaceuticals felt the backlash after a medication they sold for $1 a pill in 2010 increased overnight to $750 a tablet.

Politicians like Hillary Rodham Clinton and Bernie Sanders were quick to claim that this is why we needed more government intervention in the healthcare system. But at the time I pointed out that the reason Turing was able to raise the price so spectacularly was not because of a failure of the free market but because of government intervention:

The free market isn’t the reason [Turing’s CEO] Shkreli was able to raise the price. In fact, if he had to sell his product in a truly free market environment the price would likely remain low. And even now, if he continued to keep the price high, some enterprising pharmaceutical company would start making Daraprim themselves, increasing the supply and lowering the cost.

And that’s just what happened. That enterprising pharmaceutical company turned out to be Imprimis Pharmaceuticals. The company announced yesterday that it will start offering customizable compounded formulations of pyrimethamine (the generic name for Daraprim) and leucovorin in oral capsules starting as low as $99.00 for a 100 count bottle, or at a cost of under a dollar per capsule.

In making the announcement Mark L. Baum, CEO of Imprimis, said,
(more…)

During CNN’s Democratic debate, presidential candidate, senator from Vermont, and self-proclaimed socialist Bernie Sanders promised that if elected he would work to “raise the [federal] minimum wage to $15 an hour.”

From an economic point of view, this policy would run the risk of sparking a wage/price spiral, where wages are tied to a cost-of-living index and their increase, in turn, raises the cost of living, sending inflation out of control and ultimately working against the intended goal of helping low-wage workers.

The Neo-Calvinist theologian Abraham Kuyper, however, offers a challenge not just to the economic consequences of such a policy but to its consistency, in principle, with another of Senator Sanders’ positions: his support for unions. (more…)

and112812blogSince its inception in the 1990s, the payday lending industry has grown at an astonishing pace. Currently, there are about 22,000 payday lending locations—more than two for every Starbucks—that originate an estimated $27 billion in annual loan volume.

Christians and others worried about the poor tend to be very uncomfortable with this industry. While there may be forms of payday lending that are ethical, the concern is that most such lending is predatory, and that the industry takes advantage of the poor and others in financial distress.

So what makes a payday loan a predatory loan? The obvious answer would seem to be “high interest rates.” But interest rates are often tied to credit risk, and so charging high interest rates is not always wrong. Another answer may be that the loans appear to be targeted toward minorities. But research shows that the industry appeals to those with financial problems regardless of race or ethnicity.

What then tips a loan into the predatory column? At a blog hosted by the New York Federal Reserve, Robert DeYoung, Ronald J. Mann, Donald P. Morgan, and Michael R. Strain attempt to answer that question:
(more…)

pollution“The rules don’t apply to me,” is a favorite maxim of toddlers, narcissists, and government officials. This is especially true of the legislative branch, which frequently exempts itself—and its 30,000 employees—from federal laws that apply to the rest of us.

But just as often government at all levels simply ignores laws it finds too burdensome to comply with. A recent study published last month in the American Journal of Political Science titled “When Governments Regulate Governments” found that “compared with private firms, governments violate [the U.S. Clean Air Act and Safe Drinking Water Act] significantly more frequently and are less likely to be penalized for violations.”

Researchers David Konisky and Manny Teodoro viewed records of more than 3,000 power plants, 1,000 hospitals and 4,200 water utilities. Some of their findings include:
(more…)