Two Things Congress Must Get Done In Order To Get This Economy Going Again!


Over-Regulation is costing the American Public an enormous amount of money.  The costs of these regulations are coming out of the pockets of our small business owners, limiting new business investments, stalling innovation, and keeping this economy buried in the Great Recession.

The total cost of regulations cost the American Economy over $1.75 Trillion dollars each year.  To put that into perspective, ObamaCare is supposed to cost the taxpayers $2.6 Trillion over the next decade, which pales in comparison to the almost $20 Trillion that regulations will cost the American Economy over the exact same period of time.  Conclusion:  Costly over-regulation is set to cost over 500% more than ObamaCare.  What is worse than that?  Most, if not all, of these regulations are never voted on, and are put in place by bureaucrats who have never been elected.

How can we fix this problem?

Who can step in and save the day, eliminate needless regulations, and stop the government from continuing to expand at an alarming rate?

The answer is Congress…Now that you have all let out a groan, since we know that Congress is the last group of people we would ever want to depend on for a task this important, let’s look at the simple steps they could take to take on this issue today.

1)       Use the power they already have:  The 1996 Congressional Review Act allows Congress to review and veto any regulation put in place by the Executive Branch.  This Act is almost never enforced, yet Republicans could block every new regulation that Obama and Co. try to put in place if they wanted.  Republicans need to read this Act (I know…unlikely….but a guy can dream, can’t he?) and enforce this act over and over until the Executive Branch stops trying to force new regulations down our throats.

2)      Vote the REINS Act into place.  Senator Rand Paul has tried to push this legislation, which would make it a law that Congress would have to vote on, and pass, any new regulation that would have over a $100 million impact on the economy.  This would stop bureaucrats who have never been elected from having hundreds of millions of dollars worth of negative impacts on our economy every single year.

Why is this issue so important?  As departments of the government get larger and larger, so do their proposals and regulations.  For example, the most strict ozone regulations, which are currently being considered by the Obama Administration, would cost the American Economy over 7 million jobs and over $1 Trillion dollars a year between 2020 and 2030…

There is another $10 Trillion reasons that this issue is so important…and that is JUST ONE regulation.

Forward and share this with your friends, spread the word on how much over-regulation is costing the taxpayers, and fight to hold your congress accountable to do their jobs and reverse this problem today!

 

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About Todd Hagopian (@ToddHagopian)

Todd Hagopian received his BA from Eastern Michigan University with a major in Political Science. After graduation, he worked as a Financial Advisor and a Bank Manager before returning to school. He attended Michigan State University, where he completed an MBA with a double-major in Finance and Marketing. Todd is now a Senior Product Development Manager for a Fortune 500 company. He frequently writes about business issues, social media strategy, and political issues that he finds important. Enjoy the blog!

Posted on September 3, 2012, in Politics and tagged , , , , , , . Bookmark the permalink. 2 Comments.

  1. It was the total lack of regulation and oversight of the financial sector that led to the economic meltdown in 2008. However I can understand why you think the way you do since the doing away of regulations allows you and others in the business world to screw over little guys like me and muck up the environment while enriching yourself’s at the public trough like pigs.

  2. Good Evening DaPoet! Thanks for yet another comment on my blog, I enjoy your insights. I particularly like your use of colorful language when your arguments begin to fail you…For the record, I am a son of an Electrician who never finished college, and I scrape by every month to pay my bills like everyone else. I bought a house prior to the Great Recession that is now $50K underwater. I hardly qualify as a big guy (Literally, or figuratively, as I stand a measly 5 foot 3).

    Your comment on the lack of regulation and oversight of the financial sector leading to the Great Recession is a widely-used talking point of the Liberal media. It is as flawed as most of their arguments, though I must say that they have used this one effectively.

    The fact is that there were several regulatory agencies watching over the Financial collapse that lead to the Great Recession.

    The US Federal Reserve implemented a misguided interest rate policy.

    The major ratings agencies continued to rate subprime mortgage backed securities as AAA

    The House Financial Services committee took on subprime lending prior to the collapse (at the constant urging of the Bush administration). They met and determined that no action was necessary.

    The US Federal Reserve, The House Financial Services Committee, Standard & Poors, Moody’s and Fitch all were regulating the Financial industry and they all failed to detect the oncoming recession. Government Agencies, and even independent agencies, are only as good as the people running them. In this case, both Government & Independent agencies failed. Maybe if there were 10 other agencies they would have succeeded? Maybe 20 agencies? How much more regulation would it have taken in order to eliminate the recession?

    The real reason that the recession came so hard and fast is that during the 1990’s, the Clinton Administration pushed hard for low and moderate income families to have more access to easier-to-get mortgages. They did this by giving lenders more guarantees for subprime lending. Unfortunately, the Bush Administration continued these policies, and convinced younger Americans to buy houses that they could not afford during the housing bubble. At the same time that the housing market collapsed, raw material prices went through the roof. So you had the housing market, which is a major driver of the economy, collapsing and you had costs for nearly every product in the market rising. This caused the cost of living to rise, jobs to disappear, and houses to foreclose. This caused a massive spiral downward that affected almost every single American.

    Those are the reasons the economy collapsed. Please tell me how more regulation would have stopped the housing market from collapsing, or raw materials from rising? Are we going to make it illegal for house prices to decrease? Should we force people to pay me the price I originally paid for my condo? Should we force foreign manufacturers to keep food and steel prices constant no matter what happens in the market place?

    Some regulation is good….$1.75 Trillion in regulation costs each year is ridiculous. That was the point of the article. If that makes me all of the things that you say it does….so be it.

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