“In a recent paper titled “Industrial Headwinds: Reducing the Burden of Regulations on U.S. Manufacturers,” published in the May 2024 Club for Growth Policy Handbook, economist Daniel Ikenson writes, “For manufacturing firms, the cost of federal regulations in 2022 was roughly $350 billion, or 13.5% of the sector’s GDP—a burden 26% greater than the inflation-adjusted cost of regulatory compliance in 2012.”
He adds that while the average U.S. company pays a regulatory compliance price of $13,000 per employee, large manufacturers shoulder a cost more than twice as much—$29,100. However, even some small-sized manufacturers face annual compliance costs of $50,100 per employee. This helps explain why manufacturing automation is so popular and why our fastest-growing companies are in service-sector tech, not manufacturing.”
“if it’s win-win, why just make the minimum $20? Why not $30? Or $100?
Because government requiring higher wages is not a win-win.
Interfering with market prices always creates nasty unintended consequences.”
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“No. 1: Thousands of Californians have already lost jobs because some restaurants closed. Others lost income because their employer cut worker hours. The chain El Pollo Loco cut employees’ hours by 10 percent.
Pizza Hut announced that they will lay off more than a thousand delivery drivers. One such driver, Michael Ojeda, understandably asked, “What’s the point of a raise if you don’t have a job?”
No. 2: Workers who still have jobs will lose them because now their employers have more incentive to automate. Chipotle just created a robot that makes burrito bowls. Even CNN acknowledged, “Some restaurants are replacing [fast food workers] with kiosks.”
“California first adopted its Advanced Clean Cars (ACC) standard in 2012. The rules required automakers to gradually increase sales of zero-emission vehicles as a percent of total sales in California, culminating in an 8-percent share in 2025. Plug-in hybrids, which use both electric and gas-powered motors, counted for partial credit toward the total.
The Virginia General Assembly passed House Bill 1965 in 2021, which directed the State Air Pollution Control Board to adopt low-emission and zero-emission vehicle standards equivalent to California’s. The bill was signed into law by then-Gov. Ralph Northam, a Democrat, whose support helped guarantee the bill’s passage. Virginia is among 18 states and the District of Columbia that have adopted some or all of California’s regulations.
But the following year, California adopted Advanced Clean Cars II, which greatly expanded the requirements of the original standard. Under the new rules, the zero-emission requirement would jump from 8 percent of automaker’s sales for model year 2025 all the way to 35 percent in 2026, increasing each year until 100 percent of all new vehicles sold for model year 2035 must be electric.
The following day, Youngkin and the Republican-controlled Virginia House of Delegates indicated their intent to repeal H.B. 1965 and uncouple the state from California’s rules, but the Democrat-controlled state Senate squashed their efforts the following year. In the 2023 elections, Democrats regained control of the House of Delegates while keeping control of the Senate, and the state Senate once again defeated efforts to repeal the law in January 2024.
Ultimately, California’s more aggressive rules provided the legal justification for Virginia’s withdrawal. Youngkin’s press release claims that H.B. 1965 merely authorized the state to follow Advanced Clean Cars I, the rules in place at the time that went through 2025. “An opinion from Attorney General Jason Miyares confirms the law, as written, does not require Virginia to follow ACC II,” the press release continues. “Therefore, the Commonwealth will follow federal emissions standards on January 1, 2025.”
“We are alarmed that Governor Youngkin thinks that he is above the law,” Nicole Vaughan, communications director for the Virginia Conservation Network, tells Reason in a statement. “Legislation passed in 2021 directs Virginia’s Air Pollution Control Board to adopt Advanced Clean Cars and subsequent updates to the program. In doing so, Virginia exercised an option under the federal Clean Air Act to follow the more stringent standards adopted by California and several other states to address tailpipe pollution.””
“Though there are a number of factors involved in this price creep (including high fees, which a 2018 Government Accountability Office report says make up an average of 27 percent of the ticket’s total cost), the heart of the matter is simple: demand. People all over the world are clamoring to go to just a handful of the most popular artists’ concerts. Live Nation reported that 145 million people attended one of its shows in 2023, compared to 98 million in 2019. The momentum doesn’t appear to be slowing, with ticket sales in the first quarter of 2024 higher than they were this time last year. ”
“Imagine you’re a member of a religious minority that’s on the receiving end of a lot of hate, and the local zoning board is giving you a hard time over plans to expand your house of worship. Is it regulators being their nitpicky selves? Are the neighbors weaponizing rules to squeeze out the cars and foot traffic that accompany any successful endeavor? Or could it be hostility directed at your faith? Zoning has been used and abused in all these ways, which underlines the need for reform.”
“The Supreme Court delivered a firm and unambiguous rebuke to some of America’s most reckless judges on Thursday, ruling those judges were wrong to declare an entire federal agency unconstitutional in a decision that threatened to trigger a second Great Depression.
In a sensible world, no judge would have taken the plaintiffs arguments in CFPB v. Community Financial Services Association seriously. Briefly, they claimed that the Constitution limits Congress’s ability to enact “perpetual funding,” meaning that the legislation funding a particular federal program does not sunset after a certain period of time.
The implications of this entirely made-up theory of the Constitution are breathtaking. As Justice Elena Kagan points out in a concurring opinion in the CFPB case, “spending that does not require periodic appropriations (whether annual or longer) accounted for nearly two-thirds of the federal budget” — and that includes popular programs like Social Security, Medicare, and Medicaid.
Nevertheless, a panel of three Trump judges on the United States Court of Appeals for the Fifth Circuit — a court dominated by reactionaries who often hand down decisions that offend even the current, very conservative Supreme Court — bought the CFPB plaintiffs’ novel theory and used it to declare the entire Consumer Financial Protection Bureau unconstitutional.
In fairness, the Fifth Circuit’s decision would not have invalidated Social Security or Medicare, but that’s because the Fifth Circuit made up some novel limits to contain its unprecedented interpretation of the Constitution. And the Fifth Circuit’s attack on the CFPB still would have had catastrophic consequences for the global economy had it actually been affirmed by the justices.
That’s because the CFPB doesn’t just regulate the banking industry. It also instructs banks on how they can comply with federal lending laws without risking legal sanction — establishing “safe harbor” practices that allow banks to avoid liability so long as they comply with them.
As a brief filed by the banking industry explains, without these safe harbors, the industry would not know how to lawfully issue loans — and if banks don’t know how to issue loans, the mortgage market could dry up overnight. Moreover, because home building, home sales, and other industries that depend on the mortgage market make up about 17 percent of the US economy, a decision invalidating the CFPB could trigger economic devastation unheard of since the Great Depression.
Thankfully, that won’t happen. Seven justices joined a majority opinion in CFPB which rejects the Fifth Circuit’s attack on the United States economy, and restates the longstanding rule governing congressional appropriations. Congress may enact any law funding a federal institution or program, so long as that law “authorizes expenditures from a specified source of public money for designated purposes.””
“They point out that restricting the price of housing discourages owners from maintaining and improving their property. It can also make it attractive for landlords to pull apartments from the rental market and put them up for sale as owner-occupied dwellings. Those enjoying deals on housing costs might also find themselves in the equivalent of golden handcuffs.
“Tenants in rent‐controlled units become less mobile to avoid losing access to below‐market rents,” add Miron and Aldighieri.
The authors point to studies finding that rent control has reduced the supply of rental housing in communities as far apart as Cambridge, Massachusetts, and San Francisco.”
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“the 2019 study cited last month by Miron and Aldighieri looked at a 1994 law change in San Francisco that suddenly extended rent control to housing constructed before 1980. Sure enough, tenants benefiting from controlled rents became less likely to move, while landlords subject to restrictions converted their properties to condos and co-ops or redeveloped them to escape regulation.
Rent controls “reduced the supply of available rental housing by 15 percent,” the study concluded. “This reduction in rental supply likely increased rents in the long run.” Contrary to housing activists’ intentions, “the conversion of existing rental properties to higher-end, owner-occupied condominium housing ultimately led to a housing stock increasingly directed toward higher income individuals.””
“What lies behind this shift? Some Americans prefer bigger cars, especially when gas prices are low, for their ample storage space, ability to see over other vehicles on the road, and perceived safety benefits (more on that later). But shifting consumer demands tell only part of the story.
For half a century, a litany of federal policies has favored large SUVs and trucks, pushing automakers and American buyers toward larger models. Instead of counteracting car bloat through regulation, policymakers have subtly encouraged it. That has been a boon for car companies, but a disaster for everyone else.”
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“After the 1970s OPEC oil embargo triggered a spike in gas prices, the federal government adopted an array of policies intended to reduce energy demand.
One of Congress’s most consequential moves was creating the Corporate Average Fuel Economy (CAFE) standards, which require that the average fuel economy (miles per gallon, or MPG) of a carmaker’s vehicles remain below a set threshold.
Pressed by auto lobbyists, Congress made a fateful decision when it established CAFE. Instead of setting a single fuel economy standard that applies to all cars, CAFE has two of them: one for passenger cars, such as sedans and station wagons, and a separate, more lenient standard for “light trucks,” including pickups and SUVs. In 1982, for instance, the CAFE standard for passenger cars was 24 mpg and only 17.5 mpg for light trucks.
That dual structure didn’t initially seem like a big deal, because in the 1970s SUVs and trucks together accounted for less than a quarter of new cars sold. But as gas prices fell in the 1980s, the “light truck loophole” encouraged automakers to shift away from sedans and churn out more pickups and SUVs (which were also more profitable).”
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“In the early 2000s, the federal government made these distortions even worse.
During the George W. Bush administration, CAFE was revised to further loosen rules for the biggest cars by tying a car model’s efficiency standard to its physical footprint (which is basically the shadow cast by the vehicle when the sun is directly above it). President Obama then incorporated similar footprint rules into new greenhouse gas emissions standards that are overseen by the Environmental Protection Agency (EPA).
Dan Becker, who led the Sierra Club’s global warming program from 1989 to 2007, told me that he and others warned federal lawmakers that adopting footprint-based standards was a mistake. “People like me were saying, ‘give carmakers another loophole and they’ll use it,’” he said. “But we lost.”
Those concerns proved justified. The average vehicle footprint expanded 6 percent between 2008 and 2023, a “historic high,” according to an EPA report, which also found that some carmakers, such as General Motors, actually had lower average fuel economy and higher average carbon emissions in 2022 than in 2017. To its credit, the EPA recently announced revisions to its vehicle GHG rules that would narrow (but not close) the gaps between standards for large and small cars.”
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“In the early 1960s, Europe raised the ire of American officials by slapping a 50 percent tariff on chicken exported from the United States. In retaliation, the US enacted a 25 percent tax on pickup trucks imported from abroad. The dispute is long forgotten, but the “Chicken Tax” lives on.
Although the tariff was initially aimed at Germany’s immense auto industry (Volkswagen in particular), it also applies to pickups imported from newer automaking powers such as Japan and South Korea, where carmakers are often adept at building vehicles much smaller than those available to Americans.”
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“In 1984, Congress stopped allowing small business owners to take a tax deduction for the purchase price of cars used for work. But the bill included a giant loophole: To protect those who need a heavy-duty vehicle (think farmers or construction workers), Congress made an exception, known as Section 179, for cars that weigh over 6,000 pounds when fully loaded with passengers and cargo. Today such behemoths are eligible for a tax deduction of up to $30,500, while business owners who opt for a smaller car can claim nothing at all.”
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“Every time a car owner fills her gas tank, a portion of the bill goes into the federal Highway Trust Fund, a central source of funding for roads and mass transit. That tax rate is set at $0.184 per gallon, a level that has been frozen since 1993, when Bill Clinton was less than a year into his presidency. Congressional proposals to increase the gas tax to close a yawning highway budget gap, or at least tie it to inflation, have gone nowhere.
Over the last 31 years, consumer prices have risen 113 percent, making the real value of the gas tax less than half what it was in 1993. That decline has reduced the cost of powering a huge SUV or truck with abysmal gas mileage”
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“Car safety rules are laid out in the encyclopedic Federal Motor Vehicle Safety Standards (FMVSS), which touches on everything from power windows to seat belts. But the FMVSS revolves around protecting a vehicle’s occupants; nothing within its 562 pages limits a car’s physical design to protect someone who might come into contact with it in a collision. That omission invites an arms race of vehicle size — precisely what the US is experiencing.”
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“consider who benefits from oversized vehicles. American carmakers like Ford and GM (which are headquartered in Michigan, a crucial swing state) rely on juicy margins from big SUVs and pickups, which are more expensive and profitable than smaller models. They enjoy protection from foreign competition through tariffs like the Chicken Tax, as well as favorable policies like CAFE’s light-truck loophole.
The regulatory status quo suits domestic automakers just fine — and they act as a roadblock to even modest attempts to change it.”
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“As American sales of big SUVs and trucks have surged, their owners are likely to resist policy moves they see as penalizing them. Many are likely to be unaware of the federal loopholes and policy oversights that have distorted their vehicle choices.”
“”There will always be websites willing to provide porn without carding viewers. These platforms are also less likely to take other steps to stay within regulatory or creator-protective limits,” Reason’s Elizabeth Nolan Brown wrote in March. “By driving viewers away from platforms like Pornhub—sites that engage in at least some content moderation, are relatively receptive and responsive to authorities, and are willing to forge mutually beneficial partnerships with porn creators—age verification laws could actually increase viewership of exploitative or otherwise undesirable content.””