CITES SMALL BUSINESS ADMINISTRATION STUDY* THAT THE COST OF REGULATIONS TO EACH HOUSEHOLD EXCEEDS COST OF HEALTHCARE

Washington, Jul 7 -

"Although the President's executive order to agencies requiring them to review their regulatory process and existing regulations excluded independent agencies, the Office of Management and Budget requested that they comply in the spirit of removing regulatory barriers to economic growth," said Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations. "Unfortunately for the American people, this request was largely ignored."

During his testimony, Commissioner Robert McDowell of the Federal Communications Commission (FCC) pointed out, "The FCC's rules, measured in pages, have grown by almost 800 percent over the course of 50 years, all while the communications marketplace has enjoyed more competition. During this same period of regulatory growth, America's GDP grew by a substantially smaller number: 357 percent. In short, this is one metric illustrating government growth outpacing economic growth."

Commissioner Anne Northup of the Consumer Product Safety Commission provided a specific example where excessive regulations yielded significant costs without any benefit to the public. She testified, "A member of the American Home Furnishings Alliance reported that it spent $13 million dollars on tests, new systems and tracking processes, despite the fact that every single component it used on children's furniture already complied with the current lead standard. The company was therefore not required to change a single material used in its manufacture of children's furniture, and there was no corresponding benefit in the improved safety of its children's furniture to justify the costs."

Referring to the Regulatory Flexibility Act, enacted in 1980, Stearns asked each witness if they thought it was still effective or if new legislation was needed to foster the rigorous regulatory review process needed to promote economic growth and job creation. Nearly all the witnesses expressed support for enhanced legislation and all offered to work with the Committee in developing that legislation.

Link to study