Business world bracing for flood of new regulations from Obama

posted at 2:31 pm on January 28, 2013 by Ed Morrissey

The Hill has bad news for businessmen as the second term of Barack Obama begins, and … more bad news.  First, businesses foresee a flood of regulations as Obama uses the executive branch to push an agenda that has no chance of getting through Congress:

President Obama has begun to wield the power of the executive to press forward with a second-term agenda that delights the left and terrifies the right.

When he said “we must act” in his inaugural address last week, liberals cheered him on, and conservatives saw that the electoral earthquake of November is likely to be followed by a tsunami of executive orders and regulations.

Lawmakers, lobbyists and policy groups say they are expecting a deluge of new rules from agencies across the federal government.

“They’re going to try to do with regulation what they cannot do with legislation,” said Mike House of Hogan & Lovells, a law and lobbying firm whose clients include businesses and trade groups.

Advocacy groups and liberal lawmakers are drawing up wish lists of new regulations that would cover everything from air pollution to vehicle safety to labor protections. And that doesn’t include a torrent of forthcoming rules required by the healthcare law and the Dodd-Frank financial reform act.

That won’t exactly surprise anyone here at Hot Air, but it’s beginning to sink in with the less attentive.  Bloomberg, for instance, notes that regulators don’t pay much attention to the costs of their expanded regulations:

Believe it or not, U.S. financial regulators don’t have to calculate the economic impact of the rules they write. It’s an omission they should correct before it becomes a serious obstacle to fixing the financial system.

The term “cost-benefit analysis” is gaining prominence as the battle over the 2010 Dodd-Frank financial-reform act moves into the courts. Lawyers working for corporate lobbies have challenged several rules on the grounds that the authors failed to fulfill adequately a legal requirement: Regulators must evaluate or consider — not necessarily quantify — the costs and benefits of new rules.

Courts have already struck down two Dodd-Frank rules, one designed to curb speculation in derivatives markets and another aimed at giving shareholders more say in the selection of corporate directors. The next targets could be higher-profile items, including the forthcoming Volcker rule, which seeks to prohibit short-term speculative trading at federally insured banks.

It’s easy to portray the legal challenges as typical financial-industry tactics. Problem is, they’re effective because they have a valid argument. Regulators’ cost-benefit assessments have largely failed to meet the low standards set by the law. And even if they succeeded, they would still fall short of what common sense demands.

Bloomberg’s editors don’t exactly take alaissez-faire perspective, either, which a full read makes clear.  If anything, that underscores the lack of concern over the impact of regulation.  When even those who want broader regulation complain that the expansion is irrational, counter-productive, and ignorant, people should be sitting up and taking notice.

Of course, Obama does have an advisory group that could help him out.  Two years ago, after getting spanked in the midterm elections, he created a Jobs Council to rebut criticism that his administration had no real experience in private-sector executive competence.  If anyone could convince Obama to get more disciplined about the cost-benefit analyses of proposed regulatory expansion in order to protect businesses from economic harm, it would be the Jobs Council.

They’ll have to hurry to do it, though:

If President Obama does not reauthorize his job council this week, the move will likely spark criticism from Republicans and could disquiet some Democrats. …

The Jobs Council has met in full only four times in its two-year existence, according to its own website, though it also held 18 “listening and action sessions” around the nation. Obama last year praised it as “a work council” rather than “a show council” and said that the White House had taken action on 33 of the 35 executive actions that the council had recommended.

But doubt now hangs over the question of whether the council’s original charter will be extended beyond its two-year term, with a White House aide telling The Hill that it “was only intended” to last that long.

The council hasn’t met in months, an issue that came up during the presidential campaign but didn’t have much impact in the end.  Perhaps that’s why Obama hasn’t renewed its charter, but Democrats will have a tough time defending its expiration.  The ads in 2014 pointing out that Obama laid off his own Jobs Council will practically write themselves, especially if we aren’t seeing any significant job creation and expansion of the work force by that time.

Of course, Obama may simply not care by then, either.  He won’t have to run for election again, and has little need for fig leafs to cover his left turn in the second term.


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Comments

Yeah Ed the media did a bang up job reporting that King putt hadn’t met with them in what 15 months?

Romney of course was too kind to show an unemployed person looking at a calender filling up his kitchen with days gone by since “laser like focus on jobs.”

This ain’t UFC Ed it is WWE the game is rigged.

harlekwin15 on January 28, 2013 at 2:34 PM

If so why is the bussiness world sucking up to the commie Democrat on amnesty.

Boehner: “leaders of both parties have been in secret meetings for 3 to 4 years on immigration reform and there is an agreement by the leadership of both parties”

Secret Meetings.

Agreement before hearings and votes by the House or Senate.

Fight now or else.

APACHEWHOKNOWS on January 28, 2013 at 2:35 PM

…yep!…the rats are in charge!

KOOLAID2 on January 28, 2013 at 2:35 PM

Well all is going as bho has/is wanting since he was first elected! This is just the tip of what bho will do to make our nation a third/fourth world nation?

I can not say how much I hate this evil man bho!
L

letget on January 28, 2013 at 2:36 PM

Sorry to go off-topic so early, but is anyone watching Schumer stumble through his prepared statements regarding immigration reform?

UltimateBob on January 28, 2013 at 2:37 PM

Hoping the day comes when enough businesses just say NO.

We will not comply.

Enough is enough.

katy on January 28, 2013 at 2:38 PM

Touch. Turn. Lead.

Shy Guy on January 28, 2013 at 2:39 PM

We no longer have the rule of law in America.

gwelf on January 28, 2013 at 2:41 PM

Jobs council, what jobs council? There is no unemployment, there is no economic malaise, there is no underemployment problem, there is no inflation problem…none of what you see happening is really happening.

After all, this IS the party that believes that unemployment benefits = economic stimulus.

We’re doomed.

Meople on January 28, 2013 at 2:42 PM

Did they vote for him?

vityas on January 28, 2013 at 2:42 PM

Believe it or not, U.S. financial regulators don’t have to calculate the economic impact of the rules they write. It’s an omission they should correct before it becomes a serious obstacle to fixing the financial system.

Hate to break to the folks at Bloomberg but neither the regulators nor the administration are trying to fix the financial system.

Bitter Clinger on January 28, 2013 at 2:44 PM

Scorched Earth.

He. Does. Not. Care.

can_con on January 28, 2013 at 2:46 PM

**************** Alert ******************

Video: Senators hold news conference on Immigration reform

http://www.breakingnews.com/topic/us-senate-immigration-reform-deal

canopfor on January 28, 2013 at 2:46 PM

Rush just said he would be having Rubio on his show tomorrow. Rush doesn’t do that very often to have guests! It should be nice to hear if Rubio’s stance will be the same he is out saying when on Rush’s show?
L

letget on January 28, 2013 at 2:49 PM

On this issue, I’ll go with my fellow HotAirians. We’re effin doomed. Jobs will become a rare word. Everybody wants one, but no ones gonna get it. Keep on regulating, and you’ll totally depress the job market. Bad all over.

tommy71 on January 28, 2013 at 2:49 PM

canopfor on January 28, 2013 at 2:46 PM

How did immigration become the most important item. Thanks Ghamnesty and Juan McVain.

Oil Can on January 28, 2013 at 2:51 PM

*poof* (apologies to those commentors who don’t get the *poof*)

tommy71 on January 28, 2013 at 2:53 PM

Business world bracing for flood of new regulations from Obama
==============================================================

**Shovel-Ready**!

canopfor on January 28, 2013 at 2:53 PM

Well afterall, per bho, they didn’t build or do that to have their business! Only big bro can do anything per bho!
L

letget on January 28, 2013 at 2:55 PM

canopfor on January 28, 2013 at 2:46 PM

How did immigration become the most important item. Thanks Ghamnesty and Juan McVain.

Oil Can on January 28, 2013 at 2:51 PM

Oil Can:

Well,I think,Hopey thought this was a great DISTRACTION,
in his Great Quest of Destroying America!

Its getting to be a three-ring circus!:)

canopfor on January 28, 2013 at 2:55 PM

This is not even vaguely a surprise. It has been priced in as best as people can when it comes to predicting what a fricken commie nutball might do next…

For those of you who couldn’t vote for that Mormon…feel the burn bitches.

CorporatePiggy on January 28, 2013 at 2:59 PM

We no longer have the rule of law in America.

gwelf on January 28, 2013 at 2:41 PM

Sure we do, you’re just saying it wrong: “We have a law of rules.”

WitchDoctor on January 28, 2013 at 3:00 PM

So what? It’s not like Barky doesn’t have decades of business experience to draw upon or a proven record of economic success while in office.

Bishop on January 28, 2013 at 3:01 PM

Jobs Council = Bundlers.

No need for them any more.

PattyJ on January 28, 2013 at 3:04 PM

The ads in 2014 pointing out that Obama laid off his own Jobs Council will practically write themselves, especially if we aren’t seeing any significant job creation and expansion of the work force by that time.

Silly, Ed. “Practically writing” themselves doesn’t mean “actually” writing themselves. And, if it takes the GOP to take it from “practically” to “actually,” 2012 taught us that it will not happen.

besser tot als rot on January 28, 2013 at 3:06 PM

He won’t have to run for election again

How can anyone be sure of this? Given his obvious disdain for the Constitution and all…

RedInMD on January 28, 2013 at 3:08 PM

Of course, Obama may simply not care by then, either.

Hillary cleared a path for “At this point what difference does it make!?!” Maybe the sheeple will tire of him.

DanMan on January 28, 2013 at 3:14 PM

I’m sure he’s just trying to level the playing field. ///// Please, God, let all this come back and bite him in the ass.

Cindy Munford on January 28, 2013 at 3:18 PM

Many large corporations are now in lockstep
with heir Obama. If you go along – Obama
will look the other way, maybe.
Companies should be laying low
and go into survival mode. Otherwise
they may not like the deal they are stuck
with when Obama is gone.

redguy on January 28, 2013 at 3:22 PM

Regulations are the fastest and best way to expand growth in the private sector. There is a cost of compliance for every line of regulation written. All companies that will be affected by these regulations must by law comply or there are consequences. Therefore all businesses that may be affected need to hire new compliance officers. The cost of all of this is taken directly from the greedy white republican executives, and not one cent is ever passed on to the consumer.

See, and you wingnuts really thought progressives didn’t know how to expand teh private sector.

tom daschle concerned on January 28, 2013 at 3:25 PM

Believe it or not, U.S. financial regulators don’t have to calculate the economic impact of the rules they write. It’s an omission they should correct before it becomes a serious obstacle to fixing the financial system.

Huh? A “pay-off” is a “pay-off”. Maybe Bloomberg should visit Chicago and see how it’s done.

GarandFan on January 28, 2013 at 3:28 PM

Non-Recess Appointments deemed UNCONSTIRUTIONAL…and the White House signaling they will continue to press with their decisions/appointment/ramifications – basically spitting in the Court’s face over this decision – until the matter is taken up before the Supreme Court!

This is yet the most blatantly disrespectful disregard for the law & violation of both U.S. Law & Constitution (7 of the courts) by this President/Administration to date.

Every politician who swore an oath to defend & protect the Constitution as well as enforce the Rule Of law should be outright LIVID at this arrogant, narcissistic tyrant-wanna-be, and should be moving to CENSURE him immediately, if not (more deservedly) IMPEACH HIM!

I have asked this before, HOW MANY CONSTITUTIONAL VIOLATIONS / CRIMES AGAINST U.S. LAW / IGNORING OF COURT ORDERS WILL IT TAKE BEFORE ANY ACTION IS TAKEN TO REIGN THIS PRESIDENT?!

o “Federal judge holds Obama administration in contempt over drilling”
– “The Obama Administration acted in contempt by continuing its deepwater drilling moratorium after the policy was struck down, a New Orleans judge ruled. Interior Department regulators acted with “determined disregard” by lifting and reinstituting a series of policy changes that restricted offshore drilling, following the worst offshore oil spill in U.S. history, U.S. District Judge, Martin Feldman of New Orleans ruled yesterday.”

o “Court Finds NLRB Unconstitutional, NLRB Ignores Court & Constitution”…”Obama’s Union-Controlled NLRB Thumbs Nose At Court Ruling”
– ‘President Obama’s NLRB stated it does not recognize the Court’s Decision as law and continues to March Onward. President obama also refuses to acknowledge the Court’s Decision, refusing to adher to it.’

President Obama promised he would ‘fundamentally change the U.S.’, & in the 1st month of his 2nd term he has already changed the United States into his own Chavez-esque ‘banana republic’… “viva’ el dictador”…and will the last true American out please bring the flag?!

easyt65 on January 28, 2013 at 3:52 PM

easyt65 on January 28, 2013 at 3:52 PM

Maybe he should have fundamentally changed the oath of office.
Disgusting twerp.

pambi on January 28, 2013 at 4:16 PM

Law is Passed by Congress…anything else is not Law. Vagueness and ambiguity is not Lawful; they are neither necessary, nor proper.

John Kettlewell on January 29, 2013 at 5:05 AM