It's roundup time for the runaway regulators.
Alexander reviews some of the problems caused by governmental regulation of business practices and considers some of the current moves to decrease regulatory intervention. According to the author, this is the first time in 15 years Congress has acknowledged that regulation is a matter of serious concern. The trigger was a 1978 proposal of the Federal Trade Commission (FTC) to extend its control over the voluntary product standards established by industry. Prior to that action, the author states, the FTC was condemned for listless enforcement. Economists blame excessive regulation for low productivity, lack of innovation, inflation, unemployment, and shortages. The author points out that the stringent rules of the Federal Drug Administration (FDA) have brought about a steep decline in the number of new drugs introduced--drugs which presumably could have prevented considerable suffering and quite a few deaths. The author thinks that the gold medal earned by the FDA for its refusal to approve Thalidomide has fostered a siege mentality--"We only get into trouble by approving something." The stringent regulations have caused voter dissatisfaction, as evidenced by the attempt of the FDA to bar the use of saccharine. In an effort to restore political accountability, Congress is considering strengthening the oversight of agencies by elected officials. The House of Representatives favor the wider use of the "legislative veto." This would make any new rule an agency writes subject to nullification by either House of Congress for a 60-day period. The Senate prefers a "sunset" approach, which would require that regulations, spending programs, and even entire agencies undergo periodic reapproval. A study carried out by the American Bar Association (ABA) singles out the congressional sin of needlessly enlarging the burden of regulation by creating a new agency every time it perceives a problem, eventually resulting in sharply increased regulatory compliance costs. The same ABA study recommends that each agency be required to prepare an analysis of the likely costs and benefits of their proposed rulings and of recommended regulations in light of established national priorities. Alexander concludes that the ABA recommendation for increased reliance upon the competitive market is an essential step in encouraging regulatory reform.
D003132:Commerce; D006077:Government Agencies; D007878:Legislation as Topic; D014481:United States; D014486:United States Food and Drug Administration