What is the Problem With Government Regulations and Reform?
Congress is working overtime on reforms.
After a year long debate, they passed healthcare reform and have now moved on to finance reform.
These new laws and regulations are added to existing rules.
The problem? They haven't enforced the laws already on the books! How many of the following acronyms do you recognize? SEC, IRS, EPA, OSHA, DOD, DOT, DOL, USDA, FDA, ATF, FBI, CIA, CPSC (Consumer Product Safety Commission), NSA, DHS, HUD, DOI, DEA, FCC, FTC, HHS, ITA, NIH, NRC, etc.
These are just a few of the government agencies tasked with enforcing regulations approved by congress and the president.
There is no industry in America that is not under the government microscope.
During the healthcare debate we heard about how the insurance companies were abusing their clients for profit.
Not only were there federal regulations regarding insurance companies in place, but every state in the union had an Insurance Board with the sole purpose of regulating the industry and fostering competition.
No doubt these people are drawing six figure salaries and cry about the need for more resources.
The senate is now targeting Wall Street for new financial regulations.
The question of the day is what has the SEC been doing the past 10 years.
Their sole task is to keep Wall Street in line.
And don't try to blame this one on Bush.
It's not a matter of de-regulation or re-regulation, it is about enforcement of whatever regulations are on the books.
On top of the SEC you have the Senate Committee on Banking, Housing, and Urban Affairs.
23 Senators serve on this committee.
Why is no one holding their feet to the fire.
Much of the mortgage crisis can be laid directly on their backs.
I have zero confidence that anything will change with these new laws.
Reform usually ends up costing more money and makes things more complicated.
And as usual, congress will point fingers and take no blame.
The problem is simple to understand.
The very big companies that congress is attempting to regulate are the same companies that finance campaigns and hire lobbyists.
Most laws are written by the very people who are getting regulated.
On top of that, the regulators usually have no experience in the industry that are watching.
Government agency heads get their jobs for being politically connected or they are a part of the friends and family plan.
I'm sure when Michael Powell was named head of the FCC it had nothing to do with the fact that his dad was Colin Powell.
Then when government staffers leave their posts, many will land high paying jobs within the very industry they were supposed to be holding accountable.
Is it any wonder nothing changes? I am for government regulations.
There is a needed debate between conservatives and liberals as to how many rules should be in place.
What should not be at issue is the need for enforcement.
We can't change the rules but we can change the names on the doors.
Let's show congress what real reform looks like when we vote this fall.
After a year long debate, they passed healthcare reform and have now moved on to finance reform.
These new laws and regulations are added to existing rules.
The problem? They haven't enforced the laws already on the books! How many of the following acronyms do you recognize? SEC, IRS, EPA, OSHA, DOD, DOT, DOL, USDA, FDA, ATF, FBI, CIA, CPSC (Consumer Product Safety Commission), NSA, DHS, HUD, DOI, DEA, FCC, FTC, HHS, ITA, NIH, NRC, etc.
These are just a few of the government agencies tasked with enforcing regulations approved by congress and the president.
There is no industry in America that is not under the government microscope.
During the healthcare debate we heard about how the insurance companies were abusing their clients for profit.
Not only were there federal regulations regarding insurance companies in place, but every state in the union had an Insurance Board with the sole purpose of regulating the industry and fostering competition.
No doubt these people are drawing six figure salaries and cry about the need for more resources.
The senate is now targeting Wall Street for new financial regulations.
The question of the day is what has the SEC been doing the past 10 years.
Their sole task is to keep Wall Street in line.
And don't try to blame this one on Bush.
It's not a matter of de-regulation or re-regulation, it is about enforcement of whatever regulations are on the books.
On top of the SEC you have the Senate Committee on Banking, Housing, and Urban Affairs.
23 Senators serve on this committee.
Why is no one holding their feet to the fire.
Much of the mortgage crisis can be laid directly on their backs.
I have zero confidence that anything will change with these new laws.
Reform usually ends up costing more money and makes things more complicated.
And as usual, congress will point fingers and take no blame.
The problem is simple to understand.
The very big companies that congress is attempting to regulate are the same companies that finance campaigns and hire lobbyists.
Most laws are written by the very people who are getting regulated.
On top of that, the regulators usually have no experience in the industry that are watching.
Government agency heads get their jobs for being politically connected or they are a part of the friends and family plan.
I'm sure when Michael Powell was named head of the FCC it had nothing to do with the fact that his dad was Colin Powell.
Then when government staffers leave their posts, many will land high paying jobs within the very industry they were supposed to be holding accountable.
Is it any wonder nothing changes? I am for government regulations.
There is a needed debate between conservatives and liberals as to how many rules should be in place.
What should not be at issue is the need for enforcement.
We can't change the rules but we can change the names on the doors.
Let's show congress what real reform looks like when we vote this fall.
Source...