Regulations

Many contend that there is a forth branch of government called the bureaucracy and it has gained far too much power because congress has gotten lazy and just turned over the running of the government to these various agencies. The recent Supreme Court ruling overturned the Chevron v Natural Resources case and it limited the power of agencies. This was heralded by many as a step in the right direction. These agencies are like Topsy, they just grow. Take the example of the city that is over run by stray dogs and they need to hire a dog catcher. They want someone who will do a good job, someone who is ambitious and willing to work long hours. They find the right candidate and he sets out on his goal of being the best dog catcher in history and the city fathers promise to help him in any way they can. He first needs a facility to house the strays which means a new building. Next he says this is a 24/7 job and he needs at least three assistance and a special wagon to collect the dogs. Each of the collected animals must be inspected by a veterinarian who in turn must give them shots. There must be special facilities constructed to take care of the animals that the Vet decides to put to sleep. A person is hired to care for the kennel and help to place the dogs in proper homes. Within a few years the problem is under control but the dog catcher is looking for ways to improve his department which he says will require more people. And that is the way a good department is run. Each year they need a bigger budget so with government agencies this means enacting more regulations. Forbes Magazine recently publish information on the cost of regulations at $3 trillion per year. That $3 trillion breaks down to $277,000 in average annual compliance costs for a typical U.S. firm. The report further notes that “The cost per employee for the typical U.S. firm is almost $13,000. This cost of federal regulation in the typical U.S. firm equals 19% of payroll expenditures.”