Tag: deregulation

Can Competition ‘Make America Great Again’?

Many worry about international trade and the increased competition to which it leads, while overlooking trade’s incredible benefits. In a refreshing Wall Street Journal article, the founder and CEO of FedEx, Fred Smith, reflects on how trade and deregulation have improved American living standards over the course of his lifetime. He recalls how many luxuries enjoyed by few during his youth plummeted in price and became accessible to more people than ever before. 

“Foreign travel was exotic, expensive and rare among the population as a whole” during the 1960s, Smith reminds us. Industry deregulation and international Open Skies agreements changed that. “Long-distance telephone calls were expensive, international calls prohibitively so,” and cell phones did not even exist yet. “From furniture to TVs and appliances, and especially automobiles, American brands dominated consumer spending” across the United States, and were often out of reach to the less affluent. Then trade worked its magic: 

[Trade] has rewarded Western consumers with low-cost products that have substantially improved standards of living. [Today] Americans and Europeans don’t need to be affluent to afford cell phones, digital TVs, furniture and appliances.

The moral of Smith’s story is clear: competition, which trade and deregulation facilitate, has an extraordinary tendency to enhance efficiency and bring down prices.

How Congress Can Remove Barriers to Affordable, Quality Telemedicine

Over at TimeCato adjunct scholar Shirley Svorny offers a proposal that GOP and Democratic presidential hopefuls would be wise to endorse:

Ted Cruz won Iowa’s Republican presidential caucus promising to repeal every word of Obamacare. When pressed for details, he said he would separate insurance from employment, expand the use of health savings accounts, and allow people to purchase insurance across state lines. These are good ideas, ones we’ve heard before. There are, however, a number of other policy initiatives worthy of attention, whether the Affordable Care Act is repealed or not. There’s one simple thing Congress could do that would expand access to high-quality care, especially for patients in rural areas, without costing taxpayers a dime.

Telemedicine providers [use] telecommunication to provide health care over distances [and] have made great strides in improving access to care for rural communities. Telemedicine allows quick access to specialists, as with stroke victims where time is of the essence. Video interactions are expected to replace a sizable chunk of face-to-face office visits.

But the current system of state licensing stands in the way of interstate practice. Physicians must maintain licenses in each state in which they treat patients. Congressional action to define the location of telemedicine services as the location of the physician would allow physicians to practice with a single license in multiple states. It would allow telemedicine to achieve its full potential.

Read the whole thing. Svorny explains this proposal at greater length in a forthcoming Cato policy analysis.

Reviewing Carter’s Deregulatory Record

As health concerns for former President Carter mount, it’s nice to be able to look back on his time in the White House and see something remarkably positive. Carter’s deregulation of air travel, commercial trucking, rail shipping and oil have delivered substantial and ongoing dividends to Americans. In today’s Cato Daily Podcast (Subscribe: iTunes/RSS/CatoAudio for iOS), Peter Van Doren discusses how those policy changes occurred.

An e-mailer reminds me that Carter’s pen also sealed the deal ending the longstanding prohibition on home brewing of beer for personal consumption. Anyone who appreciates craft beer today owes a small thanks to Carter for getting the feds out of the way of the small-scale tinkerers who eventually became today’s craft beer entrepreneurs.

Free-Market Beer

The new issue of Mid-Atlantic Brewing News has a nice article about the District of Columbia’s laissez-faire rules for beer distribution. (See page 8 in the “digital edition”).

Columnist George Rivers explains that the D.C. rules encourage entrepreneurship, bring jobs and economic activity to the city, and are a big plus for consumers:

While most jurisdictions in the U.S. erect regulatory barriers to limit the sale and consumption of alcohol, DC’s legal framework encourages retailers and wholesalers to compete for consumers’ dollars through increased selection and lower prices.

Rivers notes that beer consumers flee Maryland’s red tape and higher tax burden to enjoy the lower prices in D.C. At the same time, entrepreneurial beer retailers choose D.C. to do business because they don’t have to deal with a burdensome and monopolistic wholesaling industry.

Perhaps the most celebrated beneficiary of DC’s liberal liquor laws was the legendary Brickskeller, once holder of the Guiness World Record for the largest selection of beer.

D.C.’s free-market beer environment also stimulates broader economic activity.

The District’s flexible liquor laws have helped facilitate the logistical challenges behind the pairing of 144 craft beers and food at SAVOR, the nation’s premier beer-and-food event, now in its fourth year.

So up with deregulation, up with jobs and investment, and down the chute with the beer!

Obama as Reluctant Deregulator: Four Months Later

When President Obama, following his midterm “shellacking” at the polls, announced his belated conversion to the cause of regulatory relief, I was skeptical. I noted that, despite the reputation of OIRA chief Cass Sunstein as a brilliant scholar with an openness to cost-benefit analysis rare on the Left, the first two years of the Obama administration had been marked by a tremendous ramping up of regulatory burdens on the economy, both in areas of new legislation (ObamaCare, Dodd-Frank) and in new agency rulemakings gearing up from the “ultras” — ardently pro-regulatory appointees like Margaret Hamburg at FDA, Lisa Jackson at EPA, and David Michaels at OSHA. I also observed that in boasting of its deregulatory accomplishments, the administration chose an exceedingly minor example (saccharin’s reclassification as not being a hazardous waste) in which no one important seemed to have been pushing on the opposite side. That suggested that the Obama White House might lack the stomach to press deregulation when doing so might actually offend pro-regulation constituencies.

Yesterday the administration announced the results of its comprehensive review in which more than two dozen agencies looked at existing regulations to identify areas where burdens could be reduced [WaPo, AEI Enterprise, Wayne Crews/CEI]. As Cary Coglianese notes at the Penn Program on Regulation’s RegBlog,

[M]any of the initial rules agencies have proposed to put under the microscope seem underwhelming. Frequently they are what might be considered “paperwork” rules, with agencies hoping to find ways to streamline reporting and make more information available online. The Treasury Department, for example, plans to review an Internal Revenue Service regulation so as to correct instructions about where to file for a tax refund or credit. The Commerce Department’s plan identifies, among other things, the rule governing the “application number” and “filing date” for patents.

There’s nothing wrong with streamlining paperwork, of course, but it’s a cause that even “ultras” can get behind. Indeed, one of the largest line-item claims of savings comes from an OSHA plan “to finalize a proposed rule that would harmonize U.S. hazard classifications and labels with those used by other nations, which is expected to result in an annualized $585 million in estimated savings for employers.” As Coglianese notes, “few of the rules listed in the plans as targets for review are the salient regulatory issues of the day.” Tellingly, one of the most significant retreats on a regulatory issue in recent weeks — the EPA’s decision to pull back expensive new regulations on boiler emissions — is not boasted about, perhaps because the retreat is intended to be only temporary.

I do note with a ripple of “great minds think alike” satisfaction that Sunstein did advance, as one of his central examples of a new administration accomplishment, the EPA’s very belated recognition that spills of milk on dairy farms are not “oil spills” requiring elaborate containment and remediation measures. I had been writing about that one in this space for a while, and had specifically cited it in January as an example of the sort of craziness the Obamanauts should be trying to address if they want to be taken seriously on the issue of deregulation.

Tuesday Links

Monday Links

  • Burnt rubber: Obama’s decision to slap a 35 percent tariff on Chinese tires whiffs of senseless protectionism.