Research Briefing

Now With No Passable Plan For Jobs, The White House Refuses To Acknowledge That Obama’s Regulations Are Holding Back Hiring

TREASURY SECRETARY GEITHNER SAYS THAT THE IDEA THAT REGULATIONS ARE HOLDING BACK THE ECONOMY IS “WITHOUT FOUNDATION”

Treasury Secretary Timothy Geithner: “And I think the argument that you’ve heard, that what’s hurting the economy now is an excess of regulation is without foundation.” (Timothy Geithner, Remarks Before The House Financial Services Committee, Washington, D.C., 10/6/11)

• Geithner Says That Complaining About Regulations Will Not Put Anyone Back To Work. “‘If the alternative plan is for Washington to do nothing, that's unacceptable,’ Geithner said. ‘If the alternative plan is to sit there and say we're going to cut our way out of this by just cutting spending, that would make the economy weaker. Or we're going to sit here and just complain about regulation. ... That will not do anything to help the average family now still suffering so much from the crisis.’” (Ben Forer, “$200K Per Job? Timothy Geithner Says White House Jobs Plan Is Still A Bargain?” ABC News, 9/26/11)

The Congressional Budget Office, Mark Zandi And Even President Obama’s Jobs Council Disagree

The Congressional Budget Office Said Uncertainty Surrounding Dodd-Frank, ObamaCare, Regulatory Policy And Future Changes In Taxes Are Affecting Businesses’ Ability To Hire And Invest. “In addition, some businesses may be unsure and concerned about how they will be affected by the implementation of recently enacted financial and health care legislation, by the government’s regulatory policies in other areas, and by possible future changes in federal tax and spending policies. However, the degree to which all of those factors may be restraining hiring is difficult to determine.” (“The Budget And Economic Outlook: An Update,” Congressional Budget Office, 8/24/11)

Mark Zandi Said That Rules Mandated By Dodd-Frank And ObamaCare Have Caused Businesses To Save Rather Than Spend. “By revamping the nation's health care system and writing rules for Wall Street following the 2008 financial crisis, Zandi says, Obama created uncertainty that has caused businesses to save rather than spend.” (Richard Wolf, “Obama Begins Midwest Bus Tour, Hoping For Economic Jump-Start,” USA Today, 8/14/11)

“Regional Business Leaders Gave Members Of President Barack Obama's Jobs Council An Earful” This Week, With One Business Owner Telling Them “Regulatory Compliance Has Certainly Gotten Ridiculous.” “Regional business leaders gave members of President Barack Obama's jobs council an earful today, complaining about what they called onerous regulations and flawed trade policies. The one-hour session was emceed by U.S. Small Business Administration Administrator Karen Mills. ‘Regulatory compliance has certainly gotten ridiculous,’ Thorley Industries CEO Robert Daley told the panel.” (Len Boselovic, “Too Much Regulation, Business Leaders Tell Jobs Panel,” The Pittsburgh Post-Gazette, 10/11/11)

• “Members Of Obama's Own Jobs Council Pressed Him On Tuesday To Consider The Impact Of Health, Environmental And Financial Rules On Jobs.” (Jim Kuhnhenn, “Clash Over Economy Sets Tone For 2012 Election,” The Associated Press, 10/12/11)

IT SHOULDN’T BE HARD FOR GEITHNER TO SEE THE DISASTROUS EFFECTS THAT OBAMA’S REGULATORY SPREE IS HAVING ON THE ECONOMY

Dodd-Frank Hangs Over The Finance Industry

The Volcker Rule Is “The Latest Dark Cloud For The Finance Industry.” “The rule is shaping up as the latest dark cloud for the finance industry. Volcker could cost the biggest banks $2 billion or more in annual revenue, according to analyst estimates, at a time when the industry is struggling with weak growth and hefty costs.” (Scott Patterson and Alan Zibel, “Putting The Clamps On Banks,” The Wall Street Journal, 10/12/11)

• The Volcker Rule Could Hamper US Banks’ Ability To Compete Overseas. “Another complaint: the rule will hurt U.S. banks' ability to compete overseas. One concern is that clients of U.S. banks will shift their business to overseas banks that are less hamstrung by regulations.” (Scott Patterson and Alan Zibel, “Putting The Clamps On Banks,” The Wall Street Journal, 10/12/11)

New York Comptroller Thomas DiNapoli Warned That New York City Could Shed 10,000 Securities Industry Jobs By Next Year. “The shares of companies such as Bank of America Corp., Morgan Stanley and Goldman Sachs Group Inc. have been under intense pressure amid a soft economy and intensifying European debt worries. New York state Comptroller Thomas P. DiNapoli said this week that New York City could lose 10,000 securities industry jobs by the end of next year.” (Scott Patterson and Alan Zibel, “Putting The Clamps On Banks,” The Wall Street Journal, 10/12/11)

Bank Of America’s Planned 30,000 Layoffs Are Among The First Of “The Dodd-Frank Layoffs.” “What is the cost of overregulation? Bank of America appears to have provided part of the answer by announcing yesterday that the nation's largest bank will cut 30,000 jobs between now and 2014. CEO Brian Moynihan said the bank's plan is to slash $5 billion in annual expenses from its consumer businesses.” (Editorial, “The Dodd-Frank Layoffs,” The Wall Street Journal, 9/13/11)

• “These Layoffs Are Part Of The Bill For The Last Two Years Of Washington's Financial Rule-Writing.” “Mr. Moynihan didn't say this, but we will: These layoffs are part of the bill for the last two years of Washington's financial rule-writing. After loose monetary policy had combined with insane housing policy to create a financial crisis, the Democrats who ran Washington in 2009 and 2010 enacted myriad new rules that had nothing to do with easy money or housing.” (Editorial, “The Dodd-Frank Layoffs,” The Wall Street Journal, 9/13/11)

Obama’s EPA Is Crushing The Energy Industry

Ameren Corp. Announced The Closure Of Two Power Plants Due To The Obama Administration’s New EPA Regulations, Resulting In The Elimination Of 90 Positions. “Ameren Corp. said Tuesday it will close two power plants in Illinois by the end of the year, blaming the cost of complying with new pollution rules issued by the Environmental Protection Agency. The St. Louis-based utility will shut down plants in Meredosia and Hutsonville. Ninety jobs will be eliminated, though Ameren said it is seeking other places where the 22 management and 68 union workers can be reassigned.” (Jim Salter, “Ameren To Close Meredosia And Hutsonville Plants,” The Associated Press, 10/4/11)

• Ameren Expects Even More Restrictive Regulations In The Future. “Ameren said other more restrictive regulations on coal-fired generating plants are expected in the coming months and years. ‘Numerous options to bring these units into compliance were explored, including installing additional environmental controls, but the costs were just too high to be justified,’ said Steven Sullivan, president and chief executive officer of Ameren Energy Resources Co., the holding company of Ameren.” (Jim Salter, “Ameren To Close Meredosia And Hutsonville Plants,” The Associated Press, 10/4/11)

Dallas-Based Luminant, Said The EPA’s Air Pollution Rule Will Force The Closing Of Units At Coal-Fired Power Plants And Three Nearby Coal Lines. “Dallas-based Luminant, the state’s largest power producer, has said the [Cross State Air Pollution] rule will force the closing of units at one of its coal-fired plants and three nearby mines. A spokesman said the company is reviewing the changes to determine whether they satisfy its concerns.” (Matthew Tresaugue, “EPA Softens Stance On Cross-State Emissions,” The Houston Chronicle, 10/6/11)

And ObamaCare Has Employers Bracing For Higher Costs

Spending On Health Coverage For Workers “Spiked” By 9 Percent In 2011. “Employers' spending on health coverage for workers spiked abruptly this year, with the average cost of a family plan rising by 9 percent, triple the growth seen in 2010.” (Julie Appleby, “Cost Of Employer Insurance Plans Surge In 2011,” Kaiser Health News, 9/27/11)

Business Costs To Purchase Health Coverage For Employees “Rose The Most This Year Since 2005.” “The cost for businesses to buy health coverage for workers rose the most this year since 2005 and may reach $32,175 for a family in 2021, according to a survey of private and public employers.” (Jeffrey Young, “Health-Benefit Costs Rise Most In Six Years,” Bloomberg, 9/27/11)

 “The Lack Of Clarity About The Cost Implications ” Of ObamaCare Is An Impediment For Companies To Begin Hiring. “In addition to slow and uncertain revenue growth, contacts in this recovery are frequently citing a number of other factors that are impeding hiring.  Prominent among these is the lack of clarity about the cost implications of the recent health care legislation.” (Dennis Lockhart, “Business Feedback On Today’s Labor Market,” Federal Reserve Bank of Atlanta, 11/11/10)

OBAMA HAS PRESIDED OVER “A NEW AGE OF REGULATION” IN WASHINGTON

“A New Age Of Regulation Is Well Under Way In Washington ...” (Eric Lipton, “With Obama, Regulations Are Back In Fashion,” The New York Times, 5/12/10)

“At The Current Pace, The Total Regulatory Burden For 2011 (Proposed And Final) Will Exceed $105 Billion.  Since January 1, The Federal Government Has Imposed More Than 81.9 Million Annual Paperwork Burden Hours And $79.99 Billion In Compliance Costs.” (Sam Batkins, “The Week In Regulation: September 4-9, 2011,” American Action Network, 9/30/11)

During The First Two Years Of The Obama Administration, 408 Regulations With An Economic Impact Of Over $100 Million Have Been Proposed. (Clyde Wayne Crews Jr., “Ten Thousands Commandments – Figure 11,” Competitive Enterprise Institute, 2011)

• During The First Two Years Of The Obama Administration, 1,603 Regulations That Would Have Affect Small Businesses Have Been Proposed. (Clyde Wayne Crews Jr., “Ten Thousands Commandments – Figure 12,” Competitive Enterprise Institute, 2011)

Dodd-Frank “Will Unleash The Biggest Wave Of New Federal Financial Rule-Making In Three Generations.” “Yet Dodd-Frank, with its 2,300 pages, will unleash the biggest wave of new federal financial rule-making in three generations. Whatever else this will do, it will not make lending cheaper or credit more readily available.” (Editorial, “The Uncertainty Principle,” The Wall Street Journal, 7/14/10)

• “[Lawyers] Needed 26 Pages Of Flow Charts Merely To Illustrate The Timeline For Implementing The New Rules, The Last Of Which Will Be Phased In After A Mere 12 Years.” (Editorial, “The Uncertainty Principle,” The Wall Street Journal, 7/14/10)
• See The “26 Pages Of Flow Charts”