It’s everywhere in the news today, particularly in the financial and business news. It’s especially more visible on the conservative networks. Republican leaders and business leaders have launched an assault on President Obama and his agencies over the issue of regulation. President Obama has received criticism from all sorts of people, industries and even from Governors around the country. According to them, regulation is actually killing jobs and hindering economic growth. The irony is that the lack of regulation was actually brought the U.S. economy, dragging the rest of the world with it, into a deep global recession back in 2008. But are we at too much regulation? Where does one draw the line between government intervention and laissez affaire capitalism.
In my paper, I plan to answer the question to see if there is really too much regulation and figure out if it’s affecting jobs and economic growth. I will also pay a lot of attention between President Obama vs. Wall Street and digging in deeper on financial regulation. With that being said, the Dodd-Frank Bill will be greatly discussed and I will examine its results.
One agency that has been a prime target for Republicans is the Environmental Protection Agency. They portray it as symbol of heavy handed regulation that they say is strangling the economy. A few of the Republican candidates have even said that they would shut down the EPA entirely. Representative Michele Bachmann, former Speaker Newt Gingrich and Governor Rick Perry have stood by this position. They argue that proposed rules for air quality standards, regulatory burden on businesses as their compliance costs would shoot up. To them, EPA is still choking growth and puts jobs on the line.
The U.S. Department of Agriculture was another agency that was attacked by many (even New Yorkers) through the proposed regulation of derivatives. This was something that almost threatened Wall Street jobs and there was a fear that derivative operations of banks would be moved to other countries. That would of cost many jobs.
The Securities and Exchange Commission has a budget that’s three times as big from ten years ago, but according to the House Financial Services Committee, it isn’t doing any better.
Honestly speaking, the arguments against over regulation aren’t very convincing. When the criticisms are given, specific evidence and examples aren’t usually given. I plan on finding thoe specific evidence and look for examples in where regulation can hinder growth and cost us our questions.