The White House found a willing dupe to push back against the solidifying perception that President Obama’s regulatory agenda is killing jobs. Businessweek uncritically passed along a Office of Information and Regulatory Affairs review showing that “Obama’s White House has approved fewer regulations than his predecessor George W. Bush at this same point in their tenures.”
The Heritage Foundation‘s James Gattuso details why this claim is bogus:
The reporters cited OIRA data showing that the office reviewed 613 federal rules during the first 33 months of President Obama’s term, 4.7 percent fewer than the 643 reviewed during the equivalent period of the George W. Bush Administration. But this is a false indicator of red tape.
The number of rules reviewed is not the same measure as the number of rules adopted. It may be that OIRA is simply letting more rules be published without review. Moreover, the OIRA count includes a large number of rules with little economic impact. OIRA itself has long maintained that the “vast majority” of regulatory burdens are imposed by “economically significant” or “major” rules—those with $100 million or more in economic impact. The Obama Administration has approved 129 such rules, compared to 90 by the George W. Bush Administration during the same period. Even Bill Clinton’s Administration approved only 115 such rules.
The gap grows larger when accounting for rules imposed by independent agencies, whose members are selected by the President for fixed terms and not subject to direct presidential oversight. These agencies—which range from the Securities and Exchange Commission to the Federal Communications Commission—have been increasingly prolific in recent years, but because of their status, their regulations are not reviewed or approved by the Office of Management and Budget. Including these agencies, the Obama Administration has imposed 214 major rules through October, compared to 139 in the equivalent period under George W. Bush.
The Businessweek report dismisses this increase as an effect of inflation eroding the $100 million threshold for major rules. But inflation has totaled 28 percent over the past eight years—hardly enough to explain the 53 percent increase in major rules.
The number of rules reviewed is not the same measure as the number of rules adopted. It may be that OIRA is simply letting more rules be published without review. Moreover, the OIRA count includes a large number of rules with little economic impact. OIRA itself has long maintained that the “vast majority” of regulatory burdens are imposed by “economically significant” or “major” rules—those with $100 million or more in economic impact. The Obama Administration has approved 129 such rules, compared to 90 by the George W. Bush Administration during the same period. Even Bill Clinton’s Administration approved only 115 such rules.
The gap grows larger when accounting for rules imposed by independent agencies, whose members are selected by the President for fixed terms and not subject to direct presidential oversight. These agencies—which range from the Securities and Exchange Commission to the Federal Communications Commission—have been increasingly prolific in recent years, but because of their status, their regulations are not reviewed or approved by the Office of Management and Budget. Including these agencies, the Obama Administration has imposed 214 major rules through October, compared to 139 in the equivalent period under George W. Bush.
The Businessweek report dismisses this increase as an effect of inflation eroding the $100 million threshold for major rules. But inflation has totaled 28 percent over the past eight years—hardly enough to explain the 53 percent increase in major rules.
