POLITICS JANUARY 27, 2011
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Cliff Stearns wanted answers. Just not, mind you, complicated answers. Stearns, the Florida Republican who now chairs the House energy and commerce oversight subcommittee, decided to hold a hearing Wednesday on Barack Obama’s promise to snip away outdated federal regulations. In theory, Stearns had the ideal witness: Cass Sunstein, the White House’s "regulatory czar," who, in his past life as a law professor (and frequent TNR contributor), seemed like he published a new book on subjects like cost-benefit analysis every few months. Surely this was the guy you wanted explaining Obama's plans to streamline government. Yet Stearns didn't seem terribly interested in Sunstein's nuanced views on the subject.
“To make this as productive as possible, when you're answering questions, if you could just answer yes or no,” Stearns began. He went on to question why Obama’s new approach to regulation would allow federal agencies to consider factors like “human dignity” and “fairness and distributive impacts” in crafting their rules. (As Eric Posner has suggested, this criteria may give the Obama administration some wiggle room, so that it can keep regulations with hard-to-quantify benefits for, say, human health or the environment.) Isn’t the latter, Stearns wondered, just a code word for income redistribution?
Sunstein looked all set to deliver a lecture on the topic: “That wasn’t our…”
“OK, OK, you’re saying no, OK,” Stearns interrupted. He moved on to another question. “But won’t these standards make it difficult to have any rational cost-benefit analysis?” It was a fair question—after all, this is part of what distinguishes Obama's approach to regulation from Reagan's—and plenty of onlookers would've loved to hear Sunstein's response.
“That would be a no…” Sunstein began.
“OK, OK,” Stearns cut him off again. The chairman then noted that, at this point in 2003, the Bush administration had rejected 19 regulations by federal agencies, while the Obama administration has rejected none. Sunstein tried to explain: “I’d say yes, I’m aware of that. But would you like an elaboration?” Stearns didn't “I think when the Democrats have a chance [to ask questions], then you can have an elaboration.” A clearly exasperated Sunstein could barely get a word in, and, at the end of the interrogation, his only quip was, “Thank you for enabling me to be brief.”
And so began the House Republicans’ war on federal regulations. If Obama thought his Wall Street Journal op-ed—the one where he promised to subject government to greater scrutiny and “remove outdated regulations that stifle job creation”—would garner any Republican love, he was wrong. On the energy and commerce subcommittee, at least, few of the GOP members were interested in understanding the finer points of the new review. Mostly, they just wanted to beat up on regulations they didn't like—never mind what the nerdy law professor sitting before them had to say about it.
When Joe Barton, a Texas Republican, got his chance to ask questions, Sunstein tried to explain that the Obama administration hasn’t issued that many more new regulations in its first two years than the previous Bush administration did in its last two. Barton mused that the new health care law must have created "thousands" of new regulations. When Sunstein tried to suggest that "I don't think the data supports that claim," Barton cut him off. Instead, he wanted to know if Sunstein agreed that the EPA’s “endangerment finding”—the one declaring that global warming poses a threat to human health and welfare—will cost millions of jobs and billions of dollars. Sunstein patiently explained that the endangerment finding isn’t, in itself, a regulation (it’s only a scientific determination), and that the EPA is trying to “minimize the burdens” of any carbon regulations they issue. Barton wasn't impressed.
Later on in the hearing, Sunstein actually did get a chance to delve into the details of Obama’s approach to regulation. Oklahoma Republican John Sullivan asked him to explain the whole bit about how agencies must consider equity and human dignity: “Say, for example, your cost-benefit tests impose $100 billion in costs to the economy but supposedly result in $1 trillion in human dignity. What does this mean?” Sunstein offered up, as an example, rules mandating wheelchair access, which may not always pass a strict economic cost-benefit test, but do have other virtues. Sullivan was unmoved: “I understand, but someone keeping their job is dignity, too.”
A similar exchange later on got to the core disagreement between the White House and the Republicans over regulations. Cory Gardner, a conservative freshman from Colorado, asked if, amid the current recession, Sunstein would oppose any regulations that hurt job growth. “A yes answer would be preposterous,” Sunstein replied. "If there's a regulation that's saving 10,000 lives and costing one job, it's worth it." That's not a pure hypothetical: There are plenty of new pollution rules coming down the pipe that, according to the EPA, would cost companies billions of dollars, but save the public even more money by reducing lung diseases and asthma attacks.
When Sunstein was first nominated to head up the Office of Information and Regulatory Affairs, a number of liberals fretted over the appointment. OIRA, after all, was the agency that, during the Reagan and Bush eras, chopped away at all sorts of regulations in the guise of "cost-benefit analysis." And Sunstein had long written in favor of this type of analysis, albeit a slightly more humane version. (Many liberals and environmentalists, by contrast, would prefer a "precautionary principle" approach to regulation—something Sunstein has explicitly argued against.) But it's clear that Sunstein is never going to find backers on the right (even if we exempt, say, the Glenn Beck followers who are convinced that Sunstein has plans to harvest our organs by force). At Wednesday's hearing, his similarities with, say, George W. Bush's first regulatory czar were of less interest than the fact that he's never run a business (as California Republican Brian Bilbray scornfully noted). On regulation, at least, Obama's going to have a hard time finding a middle ground that will mollify conservatives.
Bradford Plumer is an associate editor for The New Republic.
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9 comments
I think the economy is regulation. I go to the doctor, eat in a restaurant, drive on the roads, buy food at the market, order products on line, buy a cell phone, etc. and I do it freely only because I think there is regulation minimizing the risk of such transactions. We are all better off with regulation. What if it is your father who is trapped in a mining explosion? “Thank you for enabling me to be brief,” which is a great line.
- Nusholtz
January 27, 2011 at 8:31am
The question Sunstein should have asked his Republican interrogators was if they were interested in conducting cost-benefit analysis or if they wanted to issue diktats as to what benefits should be included in the analysis. Perhaps Sunstein could be held in contempt for saying something like that, but one the Democrats in Congress certainly could say it.
- sighthnd
January 27, 2011 at 8:37am
Mollifying conservative Republicans is not the point. They reject government regulation as a matter of first principle, just as they reject anything that does not reduce taxes for the wealthy as a matter of first principle. Tom Delay did not resent unreasonable government regulation, he resented any government regulation. The man was an exterminator, wallowing in toxic chemicals, yet believed that his business should not be subject to any regulation. Can you imagine a world in which pesticides were totally unregulated? The point is to marginalize Republicans so that middle America, wallowing in ignorance, feels (and I use the emotional verb feels rather than intellectual verb understands advisedly) that the regulations imposed by the Obama administration are reasonable. Then the Obama administration can go about the business of sensible regulation.
- spd1955
January 27, 2011 at 8:40am
This isn't about regulations, or cost-benefit analysis, this is about good and evil: regulations of all stripes that destroy jobs (evil) and Republicans who would prevent Obama from adopting them (good). A large swath of Americans don't do nuance; for them, there is good and there is evil, and the successful politician is the one who can identify with the good. It's what works. Think "axis of evil". Too many Democrats focus too much on the policy and not the politics, which made Sustein an easy target for Stearns and the others. HCR is the perfect example. Democrats assumed that improving health care would, by definition, be good. Not so, for we "learned" from the Republicans that HCR would lead to "death panels" and would be "job killing", while Democrats talked endlessly about "bending the curve" and "mandates". What Sustein should have done is to answer every question with an anecdote about how this or that regulation saved a life, preferably a child's like, or even better, the life of a child who is a good Christian. Some believe that Obama's SOTU shows that he finally gets it, that it was the beginning of a narrative for good. Maybe. But he also needs to supplement that narrative with the evil that might result if his vision isn't adopted. To give Americans a clear and easy choice. Is that cynical? Maybe. But cynical in the battle of good and evil.
- rayward
January 27, 2011 at 8:43am
Should the value of regulations really be measured by jobs? Jobs were created by the subprime mortgage market. I was constantly bumping into people during the Bush II years that needed and had gotten a job as a mortgage broker and a lesser number that had become real estate agents. How about prostitution or illegal drug sales? Crime is a big industry. For each new criminal who has turned to a life of crime, we can count on one new job.
- Nusholtz
January 27, 2011 at 10:29am
Jobs are not the issue. Republicans have learned that howling about jobs, regardless of the factual basis for their cries, distracts the electorate from the real issue. They do not want to be accused of eliminating life saving regulations or regulations that improve the quality of life of the American people. Few understand the regulatory process, so they can get away with disingenuous complaints. They make the same argument about tax rates, ignoring all evidence that higher tax rates for the wealthy have only an insignificant and indirect impact on jobs. I was involved in running a small business for many years (a law firm with 15-20 lawyers), and we never once even mentioned marginal tax rates in deciding whether to hire. The only factor we considered was whether their was sufficient demand to profitably add another person.
- spd1955
January 27, 2011 at 11:36am
Excuse the typos-I am a lousy typist/proofreader.
- spd1955
January 27, 2011 at 11:38am
SPD1955 I completely agree with you about taxes, but nobody appears strong enough to overcome the shouting of "we can't raise taxes on any American!" The ideal top tax rate under the Laffer Curve, which is supposed to represent optimal tax rates for collecting revenue (too high rate = less GDP and less revenue, too low rate -- less revenue) is estimated by some economists at 60 to 69%. But I don't agree that the Republicans care about "distracting the electorate from the real issue."
- Nusholtz
January 27, 2011 at 11:53am
Nusholtz: The "real issue" in my post is the consequences to the public as the wholesale dismantling of the federal administrative and regulatory apparatus. There would be negative consequences to eliminating OSHA, MSHA, ICC, DOT, EPA, and a host of other regulations. We saw how that played out in the financial sector. The "real issue" is how to sreamline regulations without losing the benefits of the regulations. Obama is attempting to do this, and his appointment of Sunstein proves that he is serious. The Republicans, at least in their present incarnation, oppose regulation as an article of faith. They would prefer to distract the public from the consequences their position by shouting jobs, which, like mom and apple pie, no one can oppose.
- spd1955
January 27, 2011 at 1:24pm