Elected leaders delegate rulemaking to federal agencies, then seek to influence rulemaking through top-down directives and statutory deadlines. This paper documents an unintended consequence of these control strategies: they reduce regulatory agencies’ ability and incentive to conduct high-quality economic analysis to inform their decisions.
As the battle to trim American waistlines heats up, the U.S. Food and Drug Administration has joined in the fray with not one, but two rules aimed at improving the nation’s diet. The rules constitute the biggest change to the Nutrition Facts label in over two decades.
The U.S. Food and Drug Administration has recently proposed expanding its regulatory authority over tobacco products to include the regulation of cigars, pipe tobacco, hookah tobacco, electronic cigarettes (e-cigarettes), and other novel tobacco products such as dissolvable products and gels. Cigars are the most commonly used among this group, though e-cigarette use is rapidly expanding.
Many economists and economic commentators fear that the Federal Reserve does not have an adequate exit strategy from the quantitative easing that took place during the financial crisis. Its bloated balance sheet has allegedly left a looming monetary overhang that the Fed will not be able to manage once the economy returns to normal.
Libertarians intuitively understand the case for patents: just as other property rights internalize the social benefits of improvements to land, automobile maintenance, or business investment, patents incentivize the creation of new inventions, which might otherwise be undersupplied.
In the June Situation report, I promised a better second-half economy. I did more than keep my promise. The first estimate for 2Q2014 GDP growth brought a steaming 4.0 percent, along with an upward revision of lQ2014’s growth from minus 2.9 percent to minus 2.1 percent. We swung high after swinging low.
Applying benefit-cost analysis in the White House regulatory oversight process served as a basic mission of the Council on Wage and Price Stability (CWPS) during its seven-year lifespan (1974–1981). This paper reviews that CWPS experience, which involved filing comments in over 300 proceedings at more than 25 federal regulatory agencies.
In the past two years, a spate of misleading reports on intellectual property has sought to convince policymakers and the public that implausibly high proportions of US output and employment depend on expansive intellectual property (IP) rights. These reports provide no theoretical or empirical evidence to support such a claim, but instead simply assume that the existence of intellectual property in an industry creates the jobs in that industry.
The F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center invites you to a panel discussion featuring Todd Zywicki and his new co-authored book Consumer Credit and the American Economy.