Today the National Journal fact-checked President Obama’s recent claim of being a moderate regulator compared to his predecessor, President Bush. Obama touted his own record by the numbers, but on closer inspection, his math is a bit fuzzy.
In 2010 alone, 224 “economically significant” rules were issued under President Obama. An economically significant rule is one that costs the economy $100 million or more. This high price tag is the result of compliance costs imposed on businesses and individuals in order to meet the requirements of the regulation. Companies that are found to be out of compliance may be heavily fined. These types of regulations are particularly burdensome on small businesses, which have more limited resources to allot towards compliance each time a new rule pops up.
Strictly by the numbers, in the first three years of their presidencies, Obama did finalize fewer regulations than President Bush. However, as the National Journal points out, Obama’s perceived reputation as an under-regulator may be short lived. In fact, the issuance of new regulations is actually increasing each year as the Obama Administration puts on mileage, whereas the Bush Administration decreased annual issuance of regulations over its eight-year period.
More importantly, most of the regulations that are the fruit of the Obama Administration’s efforts are yet to be drafted: the Dodd-Frank Bill, the healthcare bill, and EPA initiatives alone will yield thousands of new rules as they emerge in the coming years.
The recent uptick in economically significant rules amounts to a 22 percent increase over 2009, and is the highest number ever since the government began monitoring regulatory trends. Small businesses especially have suffered the adverse effects of over-regulation, and will continue to struggle if the proliferation of new rules is not managed correctly. The President said that he has ordered federal agencies to stop making senseless regulations, but small businesses, too, must have a greater voice in the regulatory process to ensure greater transparency and accountability to the real impacts of regulation.
The post Taking a Closer Look at the President’s Regulatory Record appeared first on Small Businesses for Sensible Regulations.