Wayne Crews

Report: Americans face $1.8 trillion in annual regulatory costs

 Ten Thousand Commandments

One of the most dangerous, least often talked about threats of the governmental regulatory machine is how much of our money is engulfed in the regulatory process, putting the country deeper into debt.

The Competitive Enterprise Institute has just released its annual report on the general state of U.S. federal regulations and what is known as the “hidden tax” of the U.S. regulatory state known as the Ten Thousand Commandments.

Because regulations are proposed and enacted without allowing for a substantial review of their cost-benefit and its open discussion, Americans are hit with the consequences of the growth of the regulatory state where it hurts the most: their wallet.

“Federal agencies crank out thousands of new regulations every year,” says CEI Vice President for Policy Wayne Crews, “but we have little information on the cost or effectiveness of most of them.” According to Crews, one of the main issues with this process is the lack of transparency since few of us have access to reliable sources of information on what the regulations hope to accomplish.

The cost of the regulatory mess we find ourselves in adds hundreds of billions to our debt, which is why this report is so important. CEI Vice President for Policy warned the public that action is needed.

Regulatory State Gone Wild

Ten Thousand Commandments

Americans spend $1.8 trillion each year — nearly $15,000 per family — complying with regulations passed down by the federal government. That’s the estimate given by the Competitive Enterprise Institute (CEI) in the latest edition of Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State.

“The 2012 Federal Register ranks fourth all-time with 78,961 pages, but three of the top four years, including the top two, occurred during the Obama administration,” noted the statement accompanying the report. “The 2010s are on pace to average 80,000 pages per year—up from 170,000 in the 1960s and 450,000 in the ‘70s.”

“There are more federal regulations than ever—the Code of Federal Regulations, which compiles all federal regulations, grew by more than 4,000 pages last year and now stands at 174,545 pages, spread over 238 volumes. Its index alone runs to more than 1,100 pages,” CEI added. “Government has added more than 80,000 regulations in the last 20 years—3,708 in the last year alone. That’s one new rule Americans must live under every 2½ hours. Today, 4,062 sit in the pipeline. Those will add at least $22 billion in compliance costs and probably much more.”

The cost to Americans as result of the regulations is perhaps the troubling aspect of the report. But another startling point is the way in which these rules and regulations are being imposed on Americans. Because the Obama Administration cannot pass many of these regulations through Congress, it is bypassing the legislative branch altogether, meaning that there is little to no oversight by Congress.

The report also notes that there has been a jump in “economically significant rules” — those that bring $100 million or more in compliance costs — on President Obama’s watch.

House combats expensive regulations, passes REINS Act

In an effort to fight back against excessive regulations passed by cabinet-level agencies, the House of Representatives on Friday afternoon passed the Regulations from the Executive in Need of Scrutiny (REINS) Act by a 232 to 183 vote.

This measure would require congressional approval of rules and regulations that are expected to have an economic impact of more $100 million. These regulations adversely effect small businesses, have negative impact on job creation, and raise prices for consumers.

“For too long, Congress has allowed administrations of both parties to enact regulations at great costs to the American people with little oversight. The REINS Act would allow Congress to vote on new major rules before they are imposed on hardworking families, small businesses, and agriculture producers,” said Rep. Todd Young (R-IN), who sponsored the legislation. “Regardless of which party occupies the White House, this commonsense legislation is needed to restore the balance of power in Washington and return responsibility for the legislative process to Congress.”

Wayne Crew, vice president of policy at the Competitive Enterprise Institute (CEI), hailed passage of the REINS Act.

“This is a great day for American taxpayers,” said Crews in a release from CEI. “Between ObamaCare and President Obama’s pledge to remake American energy policy through the regulatory process, it’s more important than ever Congress exercise its constitutional authority to vote on these executive actions that impose significant costs on the public.”

White House Wants Funding to Map Human Brain

Barack Obama

Despite all the talk about draconian spending cuts due to the sequester, President Barack Obama has, as part of his FY 2014 budget, asked Congress for $100 million to map the human brain, which is trying to sell as a job creation initiative:

President Obama today proposed $100 million in spending to map the human brain in hopes of unlocking “this enormous mystery” and curing diseases and traumatic injuries.

“As humans, we can identify galaxies light years away, we can studies particles smaller than an atom, but we still haven’t unlocked the mystery of the 3 pounds of matter that sits between our ears,” the president said as he announced the new BRAIN Initiative in the East Room of the White House.

The president said the program, which he first proposed in his State of the Union address, could create jobs and potentially lead to cures for diseases such Parkinson’s, Alzheimer’s or autism.

“We can’t afford to miss these opportunities while the rest of the world races ahead,” Obama warned. “We have to seize them. I don’t want the next job-creating discoveries to happen in China or India or Germany. I want them to happen right here, in the United States of America. And that’s part of what this BRAIN initiative’s about.”

Let’s make this clear right now — while researching diseases like those President Obama named is laudable, the United States is flat broke and taxpayers cannot continue to afford paying for it. We just don’t have the money. Also, there is another aspect of continuing to poor federal dollars in scientific research.

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