Friday, January 21, 2011

Can Deregulation Work? It was hard under Ronald Reagan. It will be impossible under Barack Obama.

From Paul H. Rubin at The WSJ

…We did some good, but it was not easy. The permanent staffs of the agencies were always interested in more regulation, either because of self-selection or because promotions and power increase in a larger agency. It also helped that we deregulators (generally economists) were not usually interested in permanent government positions, because reducing the power of the agency is a sure way to make enemies.

Although my mandate was to cut back, I spent more time fighting new proposals than getting rid of old ones. The staffs wanted more, not less. Whenever I met acquaintances from other agencies the invariable comment was "You won't believe what they want to do now." ("They" were the permanent staffs.)

The current regulatory agencies are not going to hire or promote people like me. Without managers with a strong interest in deregulation and with the backing of senior administrators, there will be no serious power to buck the staffs. The current executive order seems to impose cost-benefit analysis, but it has enough loopholes ("equity, human dignity, fairness") so that agencies will be able to do whatever they want. Read it all…

[ When we start firing some of them and/or downsizing or eliminating their agencies, the staffs should get the message! JS ]

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