Obama Rulemaker: $25B Outweighed by Benefits

February 13, 2012
Bloomberg News
Mark Drajem and Elizabeth Dwoskin

Regulations approved by President Barack Obama over the first 32 months of his term cost businesses an estimated $25 billion, more than double the total of each of his two predecessors, according to White House data.

Obama signed off on fewer total regulations, however, than Republican President George W. Bush during the same period of his tenure, the data shows.

The administration said the benefits of its regulations outweigh the costs by $116 billion so far, according to the figures from an unreleased White House report provided to Bloomberg. Judging regulations by cost alone doesn’t take into account the economic benefits of healthier children, safer roads or fewer industrial accidents.

“Every new emphasis has to make sure the benefit justifies the cost,” Cass Sunstein, the head of the Office of Information and Regulatory Affairs at the White House, said in an interview. “Part of my job is making sure that whatever is done in the regulatory area is consistent with the fundamental goals of economic growth and job creation.”

Obama’s regulatory policy has been a focal point of criticism from business groups and Republicans, who say that a spate of rules meant to clean up the environment, health care and financial firms is crippling the economy.

‘Job-Killing Regulations’

Republican presidential front-runner Mitt Romney says that, if elected, he will put an end to “job-killing regulations.” The Republican-led House of Representatives last year voted to stall or block at least a dozen regulations proposed by the Environmental Protection Agency.

Representative Darrell Issa, a California Republican and head of the House Oversight and Government Reform Committee, said in a statement that “an early estimated cost of $25 billion is a sign of an even more expensive job-killing tsunami that will create more uncertainty for small businesses and put Americans out of work.”

Bill Kovacs, vice president of the U.S. Chamber of Commerce in Washington, said the administration is “producing a record number of economically significant regulations, and that’s causing unemployment.” The result is “projects not getting built and the economy not getting going,” Kovacs said in an interview.

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