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Finally, we need to curb the regulation burden once and for all. Earlier this year, departments in my administration began reporting on ways they could reduce the regulations on their books. Next, I will be recommending that Congress pass legislation requiring a cost-effectiveness measure for major regulations. Furthermore, I recommend a 10 year automatic sunset clause on each new regulation unless the rule is reviewed and found to provide substantially better impact to business development than intended.
This new framework will require, for example, the Commodity Futures Trading Commission and Federal Reserve to better analyze the impact of their proposed rules under the Dodd-Frank Act. Additionally, over the long-term, we will need to repeal harmful elements of Dodd-Frank and address the gaps in legislation that still leave financial markets distorted by political intention in a way that keeps some institutions too big and too interconnected to fail.
Admittedly, many of the benefits from these reforms will be long-term in nature. So with that in mind I also propose the following initiatives that will benefit the economy in the short-term without ignoring the long-term structural problems we still face:
- The Joint Special Committee in Congress should put together a deficit-cutting package that exceeds the $1.2 trillion minimum and turns the upward slope of government spending down, instead of just slowing the rate of spending over the next 10 years. This would provide at least a small amount of confidence to some private sector companies.
- In addition to keeping the payroll tax holiday for employees, we should extend it to employers, and pay for it with savings from tax code and entitlement reform.
- Recognizing that the unemployment insurance system is integrally woven into the social fabric of American society, we should realize that it is not going away in the near future. However, to make the spending programs more efficient, I recommend that unemployment checks be converted into vouchers given directly to companies that hire workers to keep them on payrolls for at least three months.
- I propose curbing the powers of the National Labor Relations Board to block manufacturing from relocating—69 percent of manufacturers recently reported that the NLRB has slowed their efforts to expand and create more jobs. This will not bring back millions of manufacturing jobs, but it will slow the rate at which manufacturing jobs disappear in America.
- We should remove restrictions that prevent employers from hiring on their terms, such as the minimum wage and the lending cap to small businesses placed on credit unions.
- I encourage Congress to repeal regulations like the Sarbanes-Oxley accounting rules that keep small companies from going public and thus hindering their ability to expand and create jobs.
- Finally, I encourage the states to move quickly in phasing out occupational licensing requirements, many of which simply serve to create high barriers to entry for entrepreneurs.
These are all matters that my administration and Congress should address in a timely manner, setting aside our political differences.
I hope that we can work together as a nation to harness the creativity of the American people. It is my belief that the more we as a nation recognize the true roots of today’s economic problems, the better we will be able to ground our expectations in reality and meet the challenge of adjusting to a new economy in the 21st century.
Now, are you ready for some football?
Thank you, and God bless America.
Anthony Randazzo is director of economic research at Reason Foundation.