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George Washington University Professor Susan Dudley on the economic costs of expanding regulations.
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It's pledged to get rid of unnecessary regulations but at the same time thousands more are under development.
So what's the solution with us now Susan Dudley director of the regulatory studies center at George Washington University.
And the former regulatory affairs administrator under president George W.
Bush is a welcome to the show great to see you.
I wouldn't jump right in here and show folks that some of the numbers we've been looking at when it comes to regulations.
This president on -- a role here He is that on average per year.
-- more regulations than either his predecessor or.
President Clinton look at this 59 per year.
And they're more on the way take a look at these numbers 8200.
New regulations currently under development.
300 more than last year 219 to cost at least a hundred million.
What do you make of this is it just the rule of lies in his the way the world works.
They have to have more -- more regulations every single year.
-- I'm not sure that is the way to world would have to work we are seeing an increase in regulatory activity as you said on average they're more have more of been issued.
During this administration -- year then.
Both of the previous -- president I have to say that the last year of the Bush Administration when I was a wire administrator.
There were a lot of regulations issued.
And that typically happens in the midnight year of a president that you see that going all the way back to the sixties if not before.
But I think it's unusual is that that pace has continued.
In the beginning and throughout this new administration.
Well I got to tell you figure somebody knows a lot about regulation you run this entire center at George Washington University dedicated.
To setting regulations.
You know I look at this and I look at the costs involved and I think is this any way to run an economy especially now what do you make of that.
Well that that customs regulations are really have to get a handle line we have different estimates even from the government we have estimates ranging from.
Fifty billion a year to almost two trillion dollars per year.
And the reason that -- hard to measure is that unlike taxes that fund our spending programs.
The cost of regulations are hidden in a higher costs of goods and services and opportunities for gone so.
That money be spent on regulation you cannot spend to hire new employee -- are to invested in new idea.
And so it's very hard to track so it's hard to know what those -- far but but clearly that put up some barriers for companies out there.
And what areas what parts of the economy gets the most regulation.
-- I would say that concerns about upcoming regulations probably five to three categories that to -- new.
Big legislative packages -- that Dodd-Frank affecting the financial industry and the Affordable Care Act affecting health care industry.
So those two we expect to see a lot of new regulations and then the other is the environment protection agency environmental regulations based on.
Not new legislative authority from congress.
But.
New activities within that existing authority you know we talked a lot on the show about how small businesses.
Actually get harder hit harder by regulations their costs are higher why is that.
Because per employee you have to spend a lot more and that's true for labor regulations sometimes environmental regulations.
-- they just don't have that the capacity you don't have a government affairs office to be working on making sure your complying with regularly but.
You know I I gotta say I know Americans are.
Fed up with us they feel like they're over regulated 74%.
Of us say yes.
We are over regulated.
Is there any -- back from this is there any way to roll back the stone is there any way to say hey we've had enough of this we're fed up.
At least sunset some of that stuff.
I think it's interesting usually regulations -- -- under the radar and people don't really aren't aware of them and pay attention to taxes and deficits but not so much regulation.
The fact that Americans are concerned.
Really is hitting congress and congress there are several.
Efforts to tune.
To try to do something about regulation senator Collins just this week.
Issued have been our proposed -- introduced to bell to put a moratorium on on on new regulations.
There -- bills.
In front of both houses that would require congress to approve every new major regulation and then there -- others to require better announces four new regulation will bring.
It online that's what I say at it let's and there's one thing I wanna mention the EU and you're probably not familiar with the specific circumstances I'm wondering if it happens a lot.
Have very well politically connected law firm called Wilmer hale in this new patent bill.
Got a real bonus surreal sweetener they were in trouble with the client they had -- that client 214 million dollars.
And with the passage of the patent -- a little line inserted into that bill.
That all goes away for them.
I was shocked by that it seemed like special treatment or at a connected blocked firm that could afford to give out you know a lot of money to lawmakers.
Is this than usual.
I don't know the specifics of that but unfortunately that's not all that unusual academics who -- regulation has shown.
Both theoretically and apparently.
There regulations confer benefits on some parties at the expense of -- and so it's used as a tool.
Two.
To get competitive advantage in that maybe what you're seeing in that case and to reward friends and punish I mean I guess -- Thanks so much for coming in today we really appreciate your --
