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  • President Obama’s Regulatory Bait-and-Switch

    The White House on Tuesday announced “final plans” to reduce “unreasonable” regulations that hinder economic growth and job creation.

    That President Obama even acknowledges there are costly consequences to government dictates is progress of sorts, and any reduction in red tape is most welcome. But the anticipated savings from the proposed reforms are swamped by the torrent of new regulatory burdens unleashed by this Administration.

    Regulatory officials estimate that the proposed changes, if enacted, could save businesses more than $2 billion a year. Many involve streamlining reporting procedures, while others eliminate regulatory overlap or tweak compliance technicalities. Overall, however, the most economically onerous initiatives of this Administration—Obamacare, Dodd–Frank, and the excesses of the Environmental Protection Agency—remain wholly unaffected and thus dwarf any cost savings from the regulatory review.

    Since taking office in January 2009, in fact, the Administration has imposed 75 new major regulations, with additional costs exceeding $40 billion annually. Only six deregulatory actions have been taken in that period, resulting in a net increase in regulatory cost of more than $38 billion a year.

    No other President has burdened businesses and individuals with a higher number and larger cost of regulations in a comparable period.

    Simply put, when it comes to regulation, what little this Administration takes away, it gives back liberally.

    A great many more are rules are looming. The spring 2011 Unified Agenda lists 2,785 rules (proposed and final) in the pipeline. Of those, 144 are classified as “economically significant.” With each of the 144 pending major rules expected to cost at least $100 million annually, they represent at least $14 billion in new burdens each year.

    Today’s announcement follows on a presidential executive order in January calling for a review of regulations by federal agencies. Officials released preliminary plans in May, which were finalized and posted today. The true extent of the effort remains to be seen, however. Good intentions do not always produce results—particularly when government bureaucracies are involved.

    Indeed, this Administration has a habit of touting success from hollow actions. Just months after taking office, for example, President Obama made much of calling for $100 million in budget cuts. But as noted by former Heritage Foundation analyst Brian Riedl, $100 million out of $4 trillion in spending was a rounding error of a rounding error.

    Past Administrations have hardly been paragons of regulatory restraint; the Bush Administration imposed more than $60 billion in new regulatory costs during its two terms. But it has taken Obama just two years to inflict some $40 billion in new annual regulatory burdens that took Bush six years to impose.

    Given the unparalleled cost of regulation today and the anemic economy (no coincidence), the Administration’s regulatory review effort should be treated as just the very start of a reform campaign, and not the culmination. There is a great deal that President Obama and Congress can do to alleviate the job-killing consequences of excessive regulation, and the need for action now is imperative.

    Posted in Featured [slideshow_deploy]

    12 Responses to President Obama’s Regulatory Bait-and-Switch

    1. Michael says:

      Lets deregulate the financial industry again because they did such a wonderful job with sub prime loans and reckless activities. Let's deregulate health care because the Insurance companies were terrific in allowing people with pre existing conditions to be denied care. It is so easy to simplify the regulatory discussion by saying they are bad for business and for jobs. The reality is that each and every time there is a deregulatory atmosphere, the poor get poorer, the rich richer and the country loses its moral compass.

      • Roger S. says:

        And each and every time regulations are added, the same thing happens — only then it's a different class of people getting rich: Instead of productive and innovative small and mid-size entrepreneurs (as a group the greatest creators of real new wealth — and jobs) the politicians, bureaucrats, and crony "capitalists" in bed with them, soak up the fiat money created to mask the inevitable short falls. After a while of this, the whole unsavory house of cards begins to collapse — as currently we are witnessing!

        Deregulation IS the answer: Pare the Fed. Gov. back to its Constitutionally ordained basic role(s), saving a lot of money to return to (/ stay in) the hands where it belongs — those who actually earned it. These folks will have much better ideas about how to use it wisely than Community Organizers and their minions, I'll wager. Their efforts will do more to "raise the tide" for all, including the poor, than any Washington bureaucrat — or even a 100,000 of them.

        — Empty the feeding troughs, and the "pigs" will have to find and dig their own "truffles". —
        That's the basic idea which has always worked. Clear the "bottom feeders" of all stripe out of D.C.

        Real deregulation, as opposed to the frequent excuses for it, will do just that — after the inevitable "withdrawal symptoms" which you, Michael, and many more like you, vaguely sense will come, but don't wish to "pay" in advance as the price of freedom.

        Another thing you fail to grasp: That price will have to be paid, one way or another. Your only choice is to pay it in a lump sum up front — for freedom — or, "as you go", on the installment plan while all become enslaved to all with a bunch of elitist Czars to rule your life. Think about it! My preference should be clear!

      • JeffC says:

        Since they were never deregulated in the last decade what are you talking about ? Bush tried to regulate Fannie and Freddie but was blocked by Dood and Frank … Insurance for pre-existing conditions IS NOT insurance …
        With deregulation the poor get richer everytime … seems to be more moral to help the poor doesn't it ?

        • Bobbie says:

          why is obama increasing what was never deregulated? doesn't want to "change" to correct, just use to capitalize control over the freedom of people? he justifies his ignorance to other prominent ideas because it was never deregulated under bush? Not very assertive for the right reasons, is he. Ohh that's right, he doesn't use his ability to reason. he's not doing a thing productive in promotion of the people. He's a destroyer of human dignity! who wants that, but people that don't know any better or the like minded? Michael is one of the two!

    2. Roger S. says:

      "Bait and Switch" — you got that right, title and content.
      But, it's not new, because that's this Administration's preferred mode.
      Be surprised if ever you should catch them operating from sincerity and a genuine
      appreciation of facts and logic, let alone consideration of what We, The People really want.
      Be very surprised, then. and also a little bit worried? In any case: read the "fine print".

      As things are — and have been for a very long time — the object of the game is to sell the public
      something — real or spiritual — which it neither wants nor needs with the help of anything from
      "nudge" to force, from half-truths to outright lies. The real object is, of course, power and control.
      And, as a required corollary, to convince same public it needs to pay for these unwanted "benefits".

      That's how "Community Organizers" do things, the practical side of Cloward-Piven and Saul Alinsky's
      Rules for Radicals rolled into one easy term: Bait and Switch. Means they "get you coming or going"!

      Elections have consequences. Let us pray that more of our citizens than the last time will have
      become immune to (or at least suspicious of) the easy, folksy, superficial, teleprompter talks
      meaning nothing and everything, by the time November 2012 rolls around!

      Let's hope the accumulated negative evidence regarding the doings of our Community Organizer in Chief and his minions will actually result in more and different actions than the last time. Let's also hope the
      same new rules (evidence and logic prevailing in "what's good for me and the country" as opposed
      to a short-sighted "what's in it for me") also get applied to the Little Community Organizers in both
      houses of Congress and their "apprentices" in state legislatures.

      As for Heritage: Keep up the good work! We need to spread this Info as widely as possible!

    3. Bobbie says:

      If unemployment helps the economy as the lack of intelligence of Jay Carney states, what's his excuse for the economy that hasn't grown since Obama took office and increased unemployment?!! deranged minds in control of this country is not productive to the people and undeserving of tax payers dollars. Even the most vulnerable of minds can see this belittling of intelligence. We are Americans in need of American leadership promoting American culture of freedom and independence for Americans- NOT FOR THE AMERICAN GOVERNMENT!!!!! The ignorance is uncalled for!!!!

    4. Lloyd Scallan says:

      It's apparent some of the authors at HF do not actually realize who and what is Obama. Absolutely nothing this man does or says can be taken as truth. He is an acceptable liar and has an agenda. He has and will continue to say or do anything to drive this nation into socialism. Make no mistake. The entire purpose of his win in 2008, and his throne in the White House, was designed to complete his aganda.

    5. Jill Maine says:

      If we didn't have so many empty minded gullible idiots satisfied with the main stream media, I think America would have a recall vote on this guy. I marvel at how he tries to come across as "barry to the rescue". Like someone else is responsible for the regulations. Such a damn lair.

    6. TLM says:

      Blame it on the financial industry ?? Do the people taking out the loans have any responsibility ? Barney and Cris have any responsibility ? Old story sells to the uninformed "get the rich guy".

      Also re; pre-existing conditions for insurance. Take your car into a repair facility "after" the engine has blown up and tell you want it fixed for the price of an oil change.

    7. Slick says:

      This administration has just done what it does best . . . . in a "good faith gesture" they remove regulations they really didn't like anyway and KEEP the new ones that suit their purposes!!!

      I am totally baffled why anyone in America believes anything coming out of Big O's mouth when repeated past experience over the last 2.5+ years say, "YOU LIE!" Just like Rep. Joe Wilson of SC, we now know that this President couldn't tell the truth if it bit him on his backside!!!

    8. Michiganmitch says:

      Your post is poorly cited. Name these new regulations first off. Then consider that the reason oil platforms and coal mines are exploding, pipelines are rupturing and a huge housing bubble was permiitted to inflate, burst and destroy our economy is non-existent, weak or poor enforcement of regulation. Typical Heritage junk reporting, designed to provide a rationale for greed at the expense of the overwhelming majority. How do you sleep at night?

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