You are here

OpenMarket: July 2014

  • New Study Estimates around $70 billion in Financial Regulatory Costs

    July 31, 2014 7:00 PM

    Complying with regulations is part of the cost of doing business. For bigger businesses that can absorb those costs (or rather, pass them on to the consumer), it means armies of compliance officers and hefty fees. But for smaller businesses, like community banks, the costs can be so great that it means ceasing operation.

    Typically, this scenario works to the larger institutions’ advantage, as they are better placed to handle regulatory compliance costs than are their smaller competitors. But large financial institutions are also subject to certain regulations to which smaller banks are not. The Wall Street Journal cites a new study that estimates the cost to these larger banks of complying with these regulations at roughly $70 billion.

    Some of these costs are fair, such as, for example, premiums charged by the Federal Deposit Insurance Corp for insuring deposits. Others seem less fair, such as the $2.06 billion lost to interchange fee restrictions—which incidentally, have led to more and more banks to stop offering free checking in order to compensate for this loss of income. 

  • Federal Official Says Campus Speech Should Be Restricted to Protect Young People’s Brains

    July 31, 2014 6:54 PM

    U.S. Civil Rights Commission member Michael Yaki says that speech on college campuses should be restricted to protect young people’s developing brains. This is yet another depressing example of Progressives turning against free speech. Yaki is a former senior advisor and district director for House Minority Leader (and former Speaker) Rep. Nancy Pelosi (D-Calif.).  (During the Obama administration, the Education and Justice Departments have also sought to restrict students’ free speech and due process rights on college campuses and in the public schools).

    Yaki argues that “how the juvenile or adolescent or young adult brain processes information is vastly different from the way that we adults do” and “young people, not just K through 12 but also between the ages of 16 to 20, 21 is where the brain is still in a stage of development.” 

  • Federal Official Says Campus Speech Should Be Restricted to Protect Young People’s Brains

    July 31, 2014 6:54 PM

    U.S. Civil Rights Commission member Michael Yaki says that speech on college campuses should be restricted to protect young people’s developing brains. This is yet another depressing example of Progressives turning against free speech. Yaki is a former senior advisor and district director for House Minority Leader (and former Speaker) Rep. Nancy Pelosi (D-Calif.).  (During the Obama administration, the Education and Justice Departments have also sought to restrict students’ free speech and due process rights on college campuses and in the public schools).

    Yaki argues that “how the juvenile or adolescent or young adult brain processes information is vastly different from the way that we adults do” and “young people, not just K through 12 but also between the ages of 16 to 20, 21 is where the brain is still in a stage of development.” 

  • Study Proves Economic Harm of Collective Bargaining

    July 30, 2014 4:12 PM

    A new CEI study by economist Lowell Galloway and public policy expert Jonathan Robe demonstrates the harmful economic effects of unionization on a state-by-state basis.

    Among the states most adversely affected by unionization, Michigan has suffered the most with a 23.1 percent loss in real per capita income because of unionization since 1964. Michigan is the latest state to abandon forced unionism by passing a right to work law, and Michigan workers are probably kicking themselves for not passing one sooner.

  • House Brings Transparency to Endangered Species Act, Still Needs to Protect Property Rights

    July 30, 2014 6:27 AM

    Today the House passed H.R. 4315, the 21st Century Endangered Species Transparency Act. Unfortunately, it likely has no chance of passing in the Senate and word is out from the White House that the president would veto the bill.

  • New Report Highlights Driverless Car Urban Impact; Takes Techno-Dystopian Stance

    July 29, 2014 10:26 AM

    Earlier this month, Professor David Begg of Transport Times published a new report on automated transport technology focusing on the potential impacts on London. This is one of the first attempts to apply this new technology to urban areas in a systematic way.

    The U.S. Institute of Electrical Engineers has estimated that up to 75 percent of all vehicles will be autonomous by 2040. Automated vehicles are the future but they are also quickly becoming the present. The chief concern among proponents is the potential for burdensome government regulation. It is absolutely critical lawmakers and regulators do not stand in the way of automated vehicles.

    In his report, Begg explains, like many others have noted, an issue with this technology is who is to blame when a “robot car” is involved in a collision. He asks, “Who is liable? Is the driver to blame? Is the car maker to blame? Might ‘no fault’ legislation be needed to deal with his problem?”

    To be sure, there are very real issues surrounding products liability and insurance. But this is frankly a secondary concern when confronted with the overwhelming evidence that driverless transport will save thousands of lives annually, and so far there is little indication that common law evolution cannot handle the advent of automated vehicles. Yet Begg only mentions these potential accident reductions (over 90 percent of crashes are due to human error) after expressing his speculative concerns.

  • Red Tapeworm 2014: Here Are the Federal Agencies that Issue the Most Regulations

    July 29, 2014 7:52 AM

    This is Part 20 of a series taking a walk through some sections of Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State (2014 Edition)

    Each year, a relative handful of Executive agencies accounts for a large number of the rules produced. The five executive departments and agencies listed nearly—the departments of the Treasury, Interior, Commerce,Transportation and Health and Human Services—were the biggest rulemakers in 2013.

    These top five, with 1,451 rules among them, account for 44 percent of the 3,305 rules in the Federal Unified Agenda pipeline.

    A little surprisingly, for the second time, the Environmental Protection Agency does not appear in the top five (it is sixth). Including the EPA’s 179 rules brings the total to 1,953 rules, or 48 percent.

    (There had been 223 EPA rules the prior year, and no one believes EPA is regulating less. We’ve seen earlier that rules were delayed for political purposes, and also that a large portion of federal rules no longer get listed in the Unifed Agenda following new top-down directives.)

    Also shown nearby are the top five Independent agencies in terms of rules in the Agenda pipeline. They are: Federal Communications Commission, Securities and Exchange Commmission, Office of Personnel Management, Nuclear Regulatory Commission and the Social Security Administration.

  • Bitcoin’s Undiscovered Potential

    July 28, 2014 9:58 AM

    A recent piece in American Banker magazine explores how Bitcoin and other cryptocurrencies can help the underprivileged, particularly the millions of unbanked people who do not have bank accounts. This is an area where digital currency could do much good.

    In fact, the online microfinancing platform Kiva has already begun a peer-to-peer service, known as Kiva Zip, whose model resembles some of the features in Bitcoin. Microfinancing is a form of lending for lower-income people that provides smaller loans than commercial banks are typically able to offer. Kiva Zip’s peer-to-peer structure means that users interact directly with each other, without administrators or other institutions acting as a middleman.

    Another service known as Swarm is already proposed to implement crowdfunding based on the Bitcoin protocol. Crowdfunding is a service where persons or companies propose a project or service they wish to develop and create a campaign to solicit funds for development. It is typical for campaigners to offer prize incentives for larger contributions, such as earlier access to the product or other perks.

    These new innovations represent just the initial adaptations of the Bitcoin protocol. In order for these technologies and services to continue to develop—and to help people—it is imperative that new regulations not be prematurely implemented. Otherwise, it will not be just Bitcoin businesses that suffer. Those at the bottom of the economic ladder could suffer as well, as they would lose precious opportunities to access capital.

  • Obama Claim Spurious; Labor Unions Furious; New Ranking Curious

    July 28, 2014 9:55 AM

    Coauthored with Alex Bolt.

    President Barack Obama spuriously claimed, "These so-called right-to-work [RTW] laws, they don't have anything to do with economics," when he futilely attempted to thwart Michigan’s enactment of a right-to-work law.

    A new study by the Competitive Enterprise Institute demolishes Obama’s spurious claim by showing how RTW laws, which free workers from a mandate to join a union in order to be employed, benefit states.  RTW laws produce better income, population, and job growth than in forced-unionism states.

  • CEI’s Battered Business Bureau: The Week in Regulation

    July 28, 2014 7:33 AM

    Seventy-four new regulations, from spearmint oil to insurance exchanges.

Pages

Subscribe to OpenMarket: July 2014