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Oct. 1, 2013 by Sidney Shapiro

The SBA's Office of Advocacy Criticism of Its ‘Crain and Crain' Report: A Dollar Short and A Day Late

Call it buyer’s remorse. The Office of Advocacy of the Small Business Administration (SBA) is publicly—albeit meekly—tiptoeing away from a now-infamous report that it commissioned, in which economists Nicole Crain and Mark Crain purported to find that federal regulations cost the economy $1.75 trillion in 2008. After being roundly criticized by CPR, the Congressional Research Service, and others, SBA’s Office of Advocacy now explains, referring apparently to the $1.75 trillion figure that “the findings of the study have been taken out of context and certain theoretical estimates of costs have been presented publicly as verifiable facts.” While this admission is welcome, it does not go nearly far enough in light of the antiregulatory crusade this misleading, taxpayer-supported report fueled.

Soon after the Crain and Crain report was released in 2010, CPR published a White Paper that demonstrated the unreliability and implausibility of the Crain and Crain report’s methodologies and findings.  A few months later, the nonpartisan Congressional Research Service (CRS) released its own analysis of the Crain and Crain report, and its findings were equally damning. Then the Economic Policy Institute (EPI) separately analyzed the Crain and Crain report, and concluded the Crain …

June 11, 2013 by Sidney Shapiro
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The confirmation hearing for Howard Shelanski, President Obama’s pick to serve as the Administrator of the White House Office of Information and Regulatory Affairs (OIRA) is set to take place Wednesday before the Senate Homeland Security and Government Affairs Committee.  If confirmed, Shelanski would become the Administration’s new “Regulatory Czar,” a description that indicates the significant influence OIRA’s administrator has concerning what agency rules look like and, indeed, whether those rules are issued at all.

Shelanski’s confirmation hearing comes at a crucial juncture in the Obama presidency. Progress on many important rules has been halted, including the EPA’ rule to limit greenhouse gas emissions from future power plants. Of the 139 reviews currently pending at OIRA, 71 are beyond the 90-day limit set by Executive Order 12866. A number of rules have been under review for a year or even two years.  If …

June 5, 2013 by Sidney Shapiro
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In the old television series, "Cheers," barfly and braggart Cliff Clavin was a guy who was forever "talking through his hat," offering up an endless supply of ridiculous factoids and explanations. Cliff made for good television, but the same cannot be said for the Senate Republicans who Cliff Clavin in Cheers.jpgseem to be borrowing his approach. That's what's at work with the Republican effort to block President Obama’s nomination of three distinguished lawyers to fill longstanding vacancies on the D.C. Circuit Court of Appeals by eliminating the open positions. The GOP claims the appointments are unnecessary because the circuit doesn’t need the judges – describing the nominations as “court packing.”

What utter nonsense! Even Cliff Clavin would blush at the argument! It's so absurd that I can't imagine even the Republicans believe it. The obvious reason that the GOP opposes the nominations is that …

June 4, 2013 by Sidney Shapiro
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Today, President Obama announced three nominations to the D.C. Circuit Court of Appeals. The President nominated law professor Cornelia T.L. Pillard, appellate lawyer Patricia Ann Millett and federal district judge Robert L. Wilkins to the Court. The Court has had many longstanding vacancies, including one slot that was filled when the Senate confirmed Sri Srinivasan for the post in late May. If confirmed, the President's new nominations would fill all remaining vacancies. Below is Center for Progressive Reform Member Scholar Sidney Shapiro's response to the nominations:

The President's nominations to the D.C. Circuit Court of Appeals are long overdue. The D.C. Circuit's unique jurisdiction over environmental, health, safety and other regulations gives it a particularly important role in the federal judiciary. But over the past several years, the Circuit Court's tilt to the right has made it the …

March 28, 2013 by Sidney Shapiro
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Rep. Tammy Duckworth appears to have been caught up in the anti-regulatory fervor that has continued to afflict the House of Representatives ever since the GOP took control there in 2010.  On Monday, Representative Duckworth, an Illinois Democrat, announced a plan to address what she said was a problem: “For businesses with less than twenty employees, the annual cost of federal regulation can be over $10,000 per worker.”  But before we get to the proposed solution, there’s a problem with the stated problem: it’s just not true.  The stat comes from the 2010 “Crain and Crain” study commissioned by the Small Business Administration’s (SBA) Office of Advocacy, a study that has been thoroughly debunked in a CPR white paper, by the Congressional Research Service, EPI, and others. Fully 70 percent of the study’s cost estimates came from a regression analysis based on …

Jan. 29, 2013 by Sidney Shapiro
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Congress created the Office of Advocacy (Office) of the Small Business Administration (SBA) to represent the interests of small business before regulatory agencies.   It recognized that, unlike larger firms, many, if not most, small businesses can’t afford to lobby regulators and file rulemaking comments because of the expense involved.  The Office was supposed to fill this gap by ensuring that agencies account for the unique concerns of small businesses when developing new regulations.  Instead, as new reports from the Center for Progressive Reform and the Center for Effective Government document, the Office of Advocacy is using its resources and influence to weaken the regulatory process, usually at the behest of big business.

The Office of Advocacy has steadily expanded its role in the rulemaking process, creating numerous opportunities to oppose regulation, slow the regulatory process, and dilute the protection of people and the environment against unreasonable …

Oct. 2, 2012 by Sidney Shapiro
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When the government succeeds in protecting the public from harms, is that good news – or something to be atoned for by eliminating other successful protections? If the Department of Labor issues a new rule on construction crane safety, saving dozens of lives each year, should the agency also be required to eliminate an existing safety regulation? A policy of regulatory “pay-go” would prohibit agencies from issuing new rules, no matter how beneficial they are, unless they first identify and eliminate an existing rule that involves greater or equal costs for industry.

It sounds absurd, yet it’s an actual proposal supported by some very powerful people, though it has received relatively little attention. Mitt Romney has pledged in his economic plan to implement such a system (p. 61) if he is elected President, even saying that he’d issue an executive order for it on his first …

March 20, 2012 by Sidney Shapiro
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House GOP leaders may vote as early as this week on legislation that would eliminate the Independent Payment Advisory Board (IPAB), a cost-saving measure that was established as part of the national health care reform Congress passed in 2010.  House leaders have also attached national restrictions on the right of patients to recover damages for medical malpractice (H.R. 5) to the IPAB bill, with the joint bill being called H.R. 5.  The sponsors of the bills allege that the savings from tort reform will replace the money that would be lost if the cost savings board is eliminated.  The combination of the two measures is pure politics.  Repeal of the cost-savings board enjoyed some bipartisan support before GOP leaders attached the tort restrictions to it.  Democrats are unwilling to vote for a bill that also limits the rights of tort victims.  GOP leaders therefore hope …

March 19, 2012 by Sidney Shapiro
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On Tuesday, the House Judiciary committee is marking up the Regulatory Freeze for Jobs Act (H.R. 4078), which would block virtually any “significant regulatory action”—basically, any step toward promulgating any regulation that has a large economic impact or is otherwise controversial— as long as unemployment is over 6 percent.   Rather than support initiatives that actually help the unemployed, a band of House Republicans prefer another cheap political trick here.  The reality is that a moratorium would leave millions of Americans more vulnerable to health, safety, environmental, and economic risks, without improving the economy at all.  In fact, the bill has the potential to shrink economic activity, not grow it. 

To begin with, all of the economic studies agree:  regulation does not cause a net loss in jobs. As other CPR Member Scholars and I have discussed (see herehereherehere and here, for example …

March 8, 2012 by Sidney Shapiro
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In 1975, Indiana lawmakers joined a small but growing group of state legislatures passing aggressive medical malpractice “reforms.”  Indiana’s law capped damages that victims of medical malpractice can recover at $500,000 and eliminated damages for pain-and-suffering altogether, Frank Cornelius, a lobbyist for the Insurance Institute of Indiana, played a role in helping pass this legislation.  Twenty years later, Cornelius suffered a tragic series of negligent medical errors that left him wheelchair-bound, dependent on a respirator to breathe, and requiring a morphine drip for continuous physical pain.  Facing medical expenses and lost wages of $5 million if he lived to retirement age, Cornelius experienced first-hand the effects of his lobbying for the insurance industry:  he was forced to settle his claims for the $500,000 limit.  In an op-ed in The New York Times several years later, Mr. Cornelius told his story, expressing regret and noting …

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