Transcript Katherine McFate - EARN: Economic Analysis and Research Network

The Right’s Next Target:
Job Killing Regulations
EARN Conference 2011
Milwaukee WI
OMB Watch/Coalition for Sensible Safeguards
“Job Killing” Rhetoric
Obama: Regulations Burden Businesses
Obama: Economic Crisis Can’t Be Used to
Wipe Out Americans’ Basic Protections
Grover Norquist: “Short term progress is we didn’t raise
taxes; we are dealing with the spending problem. Long
term, we’ve set the precedent: from now on, we’re going to
insist whenever the debt ceiling goes up we will ask for a
dollar for dollar reduction in spending.
There’s been a wave of regulations both that have arrived
and that have been threatened. I think the biggest threat to
the economic growth now is the concern that next week
you’ll wake up and EPA or some other government
department will decide not only what kind of light bulb you
have but what kind of care you can drive.”
Chamber of Commerce President Tom Donahue:
“We think this onslaught of new mandates and restrictions is the
biggest opposition to creating jobs…We live in the middle of
regulatory tsunami and we better do something about it or it's
just going to choke us to death.” January 2011
In June 2011, the Chamber hired former U.S. Senator Evan Bayh
of Indiana and George W. Bush White House Chief of Staff Andy
Card to “carry a bipartisan message on regulatory reform out
around the country thorough a ‘road show’ of speeches, events,
and media appearances at various local venues.”
See www.chambersnakeoiltour.org which tracks and counters
the tour.
Representative Eric Cantor:
“Tomorrow on the floor we’ll be
talking about ways to reduce the
uncertainty surrounding the
regulatory environment in the country
so our companies, our businesses can
be more competitive.” July 2011
Senator Mitch
McConnell:
“The President took a step today that highlights the devastating
impact on jobs that has been created by this administration’s
regulatory overreach. There are hundreds of regulations that
even the administration acknowledges will cost America’s job
creators billions of dollars. This action alone will prevent more
job losses than any speech the President has given.” Sept. 2,
2011
House Speaker John Boehner:
“Last week we...announced a legislative calendar
for the fall with a heavy focus on repeal of
excessive, job-destroying regulations and the
pursuit of pro-growth tax relief. American
employers are seeking relief from the excessive
federal regulation that is hampering job creation
across our country…. there are also regulations
that unnecessarily increase costs for Americans, for
job creators, and for taxpayers, preventing our
economy from creating new jobs. Small businesses,
which are the primary engine of job creation in our
economy, too often bear the brunt of excessive
regulation.” Sept. 6, 2011
President Barack Obama:
“I agree that we can’t afford wasteful
spending… I agree that there are
some rules and regulations that do
put an unnecessary burden on
businesses at a time when they can
least afford it. That’s why I ordered a
review of all government
regulations. So far, we’ve identified
over 500 reforms, which will save
billions of dollars over the next few
years…
President Barack Obama:
“But what we can’t do -- what I will not do -- is let this economic
crisis be used as an excuse to wipe out the basic protections that
Americans have counted on for decades.
I reject the idea that we need to ask people to choose between
their jobs and their safety. I reject the argument that says for the
economy to grow, we have to roll back protections that ban
hidden fees by credit card companies, or rules that keep our kids
from being exposed to mercury, or laws that prevent the health
insurance industry from shortchanging patients. I reject the idea
that we have to strip away collective bargaining rights to
compete in a global economy.
We shouldn’t be in a race to the bottom, where we try to offer
the cheapest labor and the worst pollution standards. America
should be in a race to the top.” Sept 8, 2011
Strategy: Delay, Legislate, Pre-empt & Cut
REINS – Regulations of the Executive in Needs of Scrutiny Act
– would require Congressional review of significant rules; if no
action taken by Congress within 70 days, the rule would be
nullified
Cornyn Amendment to create a commission to review and
abolish agencies and programs.
TRAINs -Transparency in Regulatory Analysis of Impacts on the
Nation (TRAIN) Act, would require a cumulative economic
analysis for specific EPA rules, and delay start date of key new
standard upgrades “until the full impact of the Obama
Administration’s regulatory agenda has been studied.”
Cuts to EPA through the appropriations process
Data note: Crain and Crain
The Small Business Administration’s Office of Advocacy commissioned a very
flawed study by Nicole Crain and Mark Crain that is the source of a constantly
repeated number - that regulations cost the economy $1.75 trillion annually.
The authors themselves say the figure should not be used as a real estimate.
The Congressional Research Service and the Center for Progressive Reform
identified methodological defects and EPI dissected the economic model at the
heart of the claim and found it so “conceptually flawed and statistically fragile
that its finding should be rejected.” (It incorrectly applied an index of
regulation, uses an erratic data set, and the model produces the
counterintuitive result that a country’s economy shrinks as its level of
education grows.) EPI applied a more complete data set and finds no
statistically significant relationship between regulatory levels and GDP.
In fact, according to the Office of Management and Budget, the EPA generates
up to $551 billion in economic benefits every year – many more times than
the cost of compliance to its rules, which topped at $29 billion a year.
To see the EPI critique, Flaws call for rejecting Crain and Crain model,
http://www.epi.org/publications/entry/7326/
Bills Passed by the House of Representatives that Have Not
Been Considered by the Senate
The Reducing Regulatory Burdens Act (H.R. 872), which would halt duplicative federal
regulations on farmers and small business owners that are impeding job creation.
The Energy Tax Prevention Act (H.R. 910), which would stop the federal bureaucracy
from imposing a job-destroying national energy tax.
The Clean Water Cooperative Federalism Act (H.R. 2018), which would restrict the
federal government’s ability to second-guess or delay a state’s permitting and water
quality certification decisions under the Clean Water Act once the EPA has already
approved a state’s program, preventing approval process delays that cost jobs and
leave businesses hampered by uncertainty.
The Consumer Financial Protection & Soundness Improvement Act (H.R. 1315), which
would increase consumer protection and government accountability by eliminating
the ability of Dodd-Frank’s unelected Consumer Financial Protection Bureau Director
to unilaterally carry out regulations that hurt job growth.
The Restarting American Offshore Leasing Now Act (H.R. 1230), which would help to
address high gas prices and support the creation of new American jobs by increasing
offshore energy production.
The Putting the Gulf of Mexico Back to Work Act (H.R. 1229) and the Reversing
President Obama’s Offshore Moratorium Act (H.R. 1231), which would help to put
thousands of Americans back to work by ending the de facto moratorium on
American energy production in the Gulf of Mexico in a safe, responsible and
transparent manner by setting firm timelines for considering permits to drill.
The Jobs and Energy Permitting Act of 2011 (H.R. 2021), which would streamline the
permit process for American energy production to help lower prices and create tens
of thousands of new jobs.
The North American-Made Energy Security Act (H.R. 1938), which would require the
federal government to make a determination by a date certain on whether or not it
will allow the Keystone XL pipeline expansion, which is projected to directly create
20,000 jobs and support the creation of thousands more, to move forward.
A Budget for Fiscal Year 2012 (H.Con.Res. 34). With Washington’s failure to control
spending hurting job creation in America, the House has passed its budget, while the
Senate has not yet considered a budget of its own.
New Federal Hit List: “Top 10 Job-Destroying Regulations”
NLRB’s Boeing Ruling (Week of September 12): On April 20, the National Labor Relations Board (NLRB) issued a complaint against The
Boeing Company for the alleged transfer of an assembly line from Washington to South Carolina… the NLRB is pursuing a “restoration
order” against Boeing that would cost South Carolina thousands of jobs and deter future investment in the United States. H.R. 2587,
the Protecting Jobs From Government Interference Act, sponsored by Rep. Tim Scott (SC), would take the common sense step of
preventing the NLRB from restricting where an employer can create jobs in the United States.
Utility MACT and CSAPR (Week of September 19): The Administration’s new maximum achievable control technology (MACT)
standards and cross-state air pollution rule (CSAPR) for utility plants will affect electricity prices for nearly all American consumers. In
total, 1,000 power plants are expected to be affected… H.R. 2401, the Transparency in Regulatory Analysis of Impacts on the Nation
(TRAIN) Act, sponsored by Rep. John Sullivan (OK), would require a cumulative economic analysis for specific EPA rules, and
specifically delay the final date for both the utility MACT and CSAPR rules until the full impact of the Obama Administration’s
regulatory agenda has been studied.
Boiler MACT (Week of October 3): From hospitals to factories to colleges, thousands of major American employers use boilers that will
be impacted by the EPA’s new “boiler MACT” rules. These new stringent rules will impose billions of dollars in capital and compliance
costs, increase the cost of many goods and services, and put over 200,000 jobs at risk. The American forest and paper industry, for
example, will see an additional burden of at least $5-7 billion. H.R. 2250, the EPA Regulatory Relief Act, sponsored by Rep. Morgan
Griffith (VA), would provide a legislative stay of four interrelated rules issued by the EPA in March of this year. The legislation would
also provide the EPA with at least 15 months to re-propose and finalize new, achievable rules that do not destroy jobs, and provide
employers with an extended compliance period.
Cement MACT (Week of October 3): The “cement MACT” and two related rules are expected to affect approximately 100 cement
plants in America, setting exceedingly stringent requirements that will be cost-prohibitive or technically infeasible to achieve. Increased
costs and regulatory uncertainty for the American cement industry—the foundation of nearly all infrastructure projects—are likely to
offshore thousands of American jobs. Ragland, Alabama, for example, recently saw the suspension of a $350 million cement
production facility, putting 1,500 construction jobs on hold and additional permanent and high-paying plant operation jobs in limbo.
H.R. 2681, the Cement Sector Regulatory Relief Act, sponsored by Rep. John Sullivan (OK), would provide a legislative stay of these
three rules and provide EPA with at least 15 months to re-propose and finalize new, achievable rules that do not destroy jobs, and
provide employers with an extended compliance period.
Coal Ash (October/November): These anti-infrastructure regulations, commonly referred to as the “coal ash” rules,
cost hundreds of billions of dollars, affecting everything from concrete production to building products like wall
board. ..an estimated loss of well over 100,000 jobs. H.R. 2273, the Coals Residuals Reuse and Management Act,
sponsored by Rep. David McKinley (WV), would create an enforceable minimum standard for the regulation of coal
ash by the states, allowing their use in a safe manner that protects jobs.
Grandfathered Health Plans (November/December): We all remember when President Obama promised Americans
that if they liked their health care plan they could keep it…by the Administration’s own estimates, will be a loss of 49
to 80 percent of small employer plans, 34 to 64 percent of large employer plans, and 40 to 67 percent of individual
insurance plans. Meanwhile, employers losing their grandfathered status will face steep penalties, increasing their
costs and negatively affecting wages and job growth. The Energy and Commerce, Ways and Means, and Education
and Workforce committees will soon be working on legislation to repeal these ObamaCare restrictions.
MISSION ACCOMPLISHED -Ozone Rule (Winter): This effective ban or restriction on construction and industrial
growth for much of America is possibly the most harmful of all the currently anticipated Obama Administration
regulations. Consequences would reach far across the U.S. economy, resulting in an estimated cost of $1 trillion or
more over a decade and millions of jobs.
Farm Dust (Winter): The EPA is expected to issue revised standards for particulate matter (PM) in the near future.
Any downward revision will significantly impact economic growth and jobs for businesses and people throughout
rural America. H.R. 1633, the Farm Dust Regulation Prevention Act, sponsored by Rep. Kristi Noem (SD). H.R. 1633
would establish a one year prohibition against revising any national ambient air quality standard applicable to
coarse PM and limit federal regulation of dust where it is already regulated under state and local laws.
Greenhouse Gas (Winter): The EPA’s upcoming greenhouse gas new source performance standards (NSPS) will affect
new and existing oil, natural gas, and coal-fired power plants, as well as oil refineries, nationwide. While the impact
on the economy and jobs are likely to be severe, the rules are quickly moving forward, once again revealing the
Administration’s disregard for the consequences of their policies on our jobs crisis.
NLRB’s Ambush Elections (Winter): This summer, the NLRB issued a notice of proposed rulemaking that could
significantly alter current union representation election procedures, giving both employers and employees little time
to react to union formations in the future. The result will increase labor costs and uncertainty for nearly all private
employers in the U.S. The House will soon consider legislation that will bring common sense to union organizing
procedures to protect the interests of both employers and their workers
The Current
Process
What it could mean for your state
• Further attacks on the right to organize/ unions
• Less federal ability to protect people in state from
pollution from other places
• Lowering federal standards to state standards –
North Carolina
• License to dirty factories and industries to ignore
rules
Dallas Morning News, Sept 11, 2011
“Washington's latest attempt to intrude on the state's authority not only undermines
Texas' successful clean-air programs, but it will cost the state tens of thousands of jobs,"
Perry said in a news release on June 15, 2010. Perry repeated the "tens of thousands"
figure in speeches, statements and news releases.
The actual number of jobs lost, however, was zero.
No plants shut down, cut production or left Texas, permit records and interviews with
Texas and federal officials, company representatives and business advocates show. All
the plants have made or are making what a consultant called a fairly smooth transition
to a different type of permit.
"We're running as normal," said Elizabeth Kimbrough, a spokeswoman for Garland Power
& Light.
Perry singled out the city-owned utility last year as a Texas venture that was in danger of
a shutdown when the EPA demanded that it change one plant's permit. The new permit
is not finished, but GP&L has not curtailed operations, she said.
The Right’s Rhetoric
• Small business as the pawn
• Uncertainty (due to jobs and regulation) is
what is making small businesses hold back
• Taxes on small businesses put them out of
business
• Regulations make it impossible for small
businesses to make a profit
Survey Research
In a national poll in May 2011, a plurality of voters favor increasing regulation of big
business and corporations (40% favor to 23% oppose), and over the course of just a
30 minute poll with some positive messaging, support for increasing regulation broke
into majority support (53% favor, 24% oppose) – independents are persuadable.
Reminding voters of past successes is a key component of a communication strategy.
They are able to identify numerous positive aspects of regulations, often citing
protection and safety as initial impressions. They regard government regulation a way
to protect people from physical harm and prevent bad things from happening A
plurality supports MORE regulation of our air and water, the nuclear industry, the
safety of workplaces, and food and drugs produced in the U.S.
Other areas the public would like to see more regulated include: products, goods, and
services that the U.S. imports from abroad; oil companies; Wall Street banks and the
financial industry; credit card companies; lending and home mortgage companies;
and “big business.”
Other Ford Foundation-funded focus group and talk back research indicated that the
“job-killer” argument has not yet become accepted folklore with the public and that
even independents and moderate Republicans accept the idea that consumer demand
is a more important determinant of business investment/job growth than concerns
about taxes or regulation with relative ease. This argument is especially effective when
coming from small business owners.
Proactive Messages
Lifting standards can CREATE jobs.
Standards encourage industries to innovate, shift into creating products for
the future, and step into new opportunities -- especially in green
technologies.
If the ozone standards would have been passed, businesses would have been
forced to make new investments in their factories – creating new jobs. They
would have been encouraged to invest the $2 trillion in profits they are sitting
on – borrowed from the American public at almost zero interest rates (Paul
Krugman)
New Public Citizen report out on how regulations spur innovation and jobs.
New safety standards for construction workers in the 1990s has spawned a
new industry in safety harnesses and safety gear.
Proactive Message
The lack of demand and access to credit is what
is hurting small businesses – not taxes and
regulations.
In a survey by McClatchey news service of small business owners in August,
not one said overregulation kept them from creating jobs; instead, most
mentioned the lack of regulation in the mortgage industry as the principal
cause of the recession. They mentioned private insurance costs, workers
compensation, lack of access to credit, lack of customers, and competition
from internet sales as problems.
In a survey in September, 80 percent of the National Association of Business
Economists said the US regulatory system was good or excellent for business
and the U.S. economy. Moreover, they said “uncertainty” was a proxy for
general anxiety about economic indicators that would go away when the
economy improves.
Proactive Message
The American people don’t have to choose between the
standards and safeguards that keep families and
communities safe and jobs. American businesses can be
responsible and make a profit.
Remind people what specific government-set standards, safeguards and rules
do rather than discuss regulations writ large. Americans want toxic free
workplaces and communities and expect their food, water, and products to
be safe. Remind people – with business spokespeople whenever possible –
that government creates the rules of the road that help us create the kind of
society we want to live in.
Proactive Message
We tried “self-regulation” and it didn’t work – BP spill, e-coli
lettuce, tainted turkey. We need stronger enforcement of
standards and protections to protect the public, not increased
influence of special interests.
Remind people that there are costs to regulatory delay. “By blocking a
stronger smog standard, first at 65 ppb and then at 70 ppb, the president and
White House officials have allowed the following health hazards to occur
every year until that standard eventually is strengthened and enforced: 4,300
to 8,000 premature deaths; 2,200 to 3,800 nonfatal heart attacks; and 23,000
to 40,000 asthma attacks.” John Walke, NRDC
Focus group participants can call up examples such as the BP oil spill in the
Gulf and the deaths of coal miners as examples of what happens when safety
standards are not enforced, but condemn both corporate neglect and
ineffective government enforcement as jointly responsible for regulatory
failures.
Obama: Economic Crisis Can’t Be Used to
Wipe Out Americans’ Basic Protections
Resources
Good Regs list serve
Protect-workers list serve
www.SensibleSafeguards.org
www.ombwatch.org
www.citizen.org
www.ncosh.org
www.snakeoiltour.org
www.crywolfproject.org