Tuesday, July 12, 2011

CPSIA - The Cost of Government Regulation Examined

I recommend that you check out Wayne Crews' article in Forbes dated July 6 entitled "The Cost of Government Regulation". This article predates the recent House Oversight hearing or the Obama Executive Order on Independent Agencies and Regulatory Reform.

Mr. Crews cites regulatory costs in excess of $1 trillion for this excess ($1.4 trillion for the self-destructive overreaction to Enron, Sarbanes-Oxley alone). Costs of this magnitude makes cost-benefit analysis something of joke. He notes:

"Agencies think within their squares and have conflicts of interest in assessing their own benefits. Regulators can ignore the opportunity costs and moral hazard they create. Even now they are in the process of distorting entire industry structures via limiting access to energy, antitrust regulatory abuse and “net neutrality” rules in telecommunications and government “stimulus” with regulatory strings attached."

Enough already!!!

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