On Federal Regulations

July 11, 2003

"But I thought Republicans were for smaller government and fewer regulations?"

"You'd hope so, but it isn't panning out that way. The Cato Institute just issued "Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State,' and its findings aren't pretty."

"Go on."

"Most people know our government will spend $2.3 trillion to fund government programs this year. But according to Cato, few are aware that federal regulations will cost us an additional $860 billion."

"How do regulations cost us so much?"

"Well, in some cases the federal government imposes new rules and regulations on lower governments, and those governments must raise taxes to cover the cost of compliance."

"The old bait and switch."

"And complying with regulations costs private sector organizations big money, too. They pass the cost along to us through increases in the price of consumer goods."

"So regulations end up costing us hard money just like taxes do?"

"Precisely. And the cost of regulations is rising rapidly. There are more than 4,000 new rules being bandied about right now. This past year, the Federal Register hit a record thickness of 75,606 pages."

"That's one massive book."

"It's massive because it contains all the rules and regulations created by the government, as well as proposed rules."

"Can you explain how all those regulations are created?"

"It all starts with law-making. In response to a social or economic need or problem, Congress passes a law. The appropriate regulatory agency then interprets that law and writes regulations that define how the law will be implemented."

"Can you give an example?"

"The FDA creates its regulations under the authority of the Food, Drug and Cosmetics Act, the Controlled Substances Act and several other acts created by Congress over the years. Based on the acts, the FDA creates specific regulations that determine what food and drug companies can and cannot do."

"Do you mean government bureaucrats, not elected officials, are really the ones determining what people and organizations can and cannot do?"

"Yep. There are more than 50 regulatory agencies in the federal government and each is empowered to create and enforce rules and regulations that are backed by the might of federal law. Individuals, and organizations, can be fined or thrown in jail for violating them."

"That sounds ominous."

"Well, it is and it isn't. Not all regulations are bad. Most people want the government to regulate the food we eat to make sure it's safe. The fact is that some people and companies need to be kept in check. But the government also must be kept in check, and, where regulations are concerned, nobody is doing that."

"You mean the bureaucrats are doing some wacky things?"

"Did you know the Agriculture Department issued a rule limiting the number of Hazelnuts that could be marketed?"

"They worry about Hazelnuts?"

"Yeah. They also limited the amount of spearmint that could be purchased in a Soviet-style attempt to manipulate the spearmint market."

"Covert spearmint operations?"

"That's nothing compared to the debate over proposed regulations for acceptable ingredients in bathroom grout."

"Our government sure is keeping busy. But why aren't regulations being kept in check?"

"Good question. Wayne Crews, author of the Cato report, says that by regulating, the government can carry out their desired programs but avoid using tax dollars to fund them. That process allows Congress to bask in the glory of popular legislation while blame agencies for the burdens and the costs."

"Those folks in Congress sure can be sly."

"He says that because disclosure and accountability for the costs of regulation are limited, the government is basically directing private-sector resources without much public fuss. And that if it doesn't end, our regulatory state will keep growing at a rapid clip."

"That doesn't sound so good."

"Crews has some ideas to fix the problem. He says Congress should have the Office of Management and Budget identify old rules to eliminate. Congress should create a regulatory report card to monitor agencies. And they should also create a bi-partisan Congressional commission to expose and eliminate harmful regulations. In other words, we should 'end regulation without representation.'"

"You got to love those people at Cato, but they are overlooking an important benefit of the Federal Register."

"What's that?"

"If Iran and other terrorist-sponsoring countries don't shape up, we can threaten to drop it on them."

Tom Purcell