Tag Archives: regulation

Drilling and Restrictions

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President-elect Donald Trump (R) wants to greatly relieve, if not eliminate, Federal restrictions on oil and natural gas producers so they can “drill, drill, drill.” Lots of folks, including shortsightedly, lots of major (and not so major) oil and gas producer executives think that’s a bad idea.

But some donors grimace when they hear Trump promise that under his watch, crude-oil producers would open the floodgates. He has also promised to cut Americans’ energy costs by 50% or more.
Oil backers’ skepticism stems from the fact that Wall Street has successfully pressured chronically indebted frackers to stop burning through cash, and return it to shareholders via buybacks and dividends instead of reinvesting it to frack more wells.
“Our stocks will be absolutely crushed if we start growing our production the way Trump is talking about it,” said Bryan Sheffield, a Texas oilman who contributed more than $1 million to Trump’s latest campaign.

That argument is a bit of a non sequitur, and so it presents no reason to not remove the restrictions. The removal wouldn’t force the oil and gas producers to drill with abandon or to increase drilling or to drill at all. It would, however, let the producers adjust their drilling from sound business reasons rather than be confined to Government’s political reasons for any adjustment.

Wasted, Slow, and Toothless

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The European Union is moving, in its glacially stately pace, toward addressing another vestige of slavery: the use of forced labor in production.

The Council of the EU on Tuesday approved a regulation that would forbid throughout the bloc’s 27 member states the sale of goods made with forced labor either within Europe or outside it.

That’s broader than the US’ ban on forced labor, which is primarily targeted at the People’s Republic of China’s use of Uighur forced labor. So far, so good. Unfortunately, the Council then wasted the effort.

The Council said the regulation will be applied three years and a day after it is published in the European Union’s official register.

There’s no reason for that much delay; it needn’t take that long to adjust supply chains, even by the bureaucrats of European businesses. Eighteen months to two years from enactment is all that’s really needed.

Then,

Investigations into forced labor within the bloc will be led by national governments, whose decisions will be binding on all EU members, the council said.

That’s the toothless part. A national government (Slovakia? Hungary? Germany?) that decides a region’s forced labor matter really isn’t by its own standards would bar all the other 26 member nations from objecting to that region’s use of forced labor as defined by any of those other member nations.

Chopping Blocks for DOGE

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There are several such in the form of overlapping and shared responsibilities across a variety Executive Branch Departments and Agencies.

Three that come to mind are anti-trust enforcement, which is shared between DoJ and FTC, among others; environmental concerns, which are shared among EPA, Interior, Energy, and DoJ among others; and energy development/production, which is shared among Interior, Energy, and EPA, among others.

There are many more.

What DOGE needs to recommend and what President Donald Trump (R) and Congress (because much of this must be done statutorily) need to do is designate one Department/Agency in each of those areas as the Responsible Department/Agency, remove all responsibility, including the Civil Service positions and authority to consult “outside experts” from the other entities, and return the associated personnel to the private sector (no reallocating them to other areas of the Federal government). This both streamlines government and reduces its size by eliminating the jobs altogether.

With regard to DoJ in particular, that Department’s role in any of this should be limited to bringing cases to court; those personnel are enforcers of existing law, not definers of what the law is or should be (though, in the latter case, they certainly can recommend to Congress).

Another target rich environment for DOGE is entirely within the Pentagon. Defense systems development and acquisition is entirely too byzantine, and that labyrinth contributes in large part to the excessive amount of time—years—it takes the Pentagon to develop a system from an initial idea and to the excessive amount of time—more years—to acquire the systems in operationally useful numbers, once a decision to acquire is made. Those interminable delays also vastly increase the costs of both development and acquisition. Here, too, the Responsible Office needs to be designated, and the number of bureaucrats required to sign off (and the number permitted to sign off) need to be reduced, with the others (particularly the erstwhile required signers) returned to the private sector.

The Pentagon moves need especially to be centered on reducing the civilian workforce and on increasing the role and the responsibility of the Combatant, Transportation, and Materiel Commands, with the Combatant commanders being the sole definers of their requirements and numbers, Transportation and Materiel being the definers of the requirements and numbers needed to satisfy the Combatants’ requirements.

The moves and cuts need to be draconian, too; half measures will only perpetuate the current waste and opportunities for waste.

A Misapprehension

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The headline suggests it.

How Science Lost America’s Trust and Surrendered Health Policy to Skeptics

Science hasn’t lost our trust, not by a long shot. What—who, really—has lost our trust is government bureaucrats who happen to have science degrees. The misapprehensions begin early in the article.

The rise of Robert F Kennedy, Jr, from fringe figure to the prospective head of US health policy was fueled by skepticism and distrust of the medical establishment—views that went viral in the Covid-19 pandemic.

No, it wasn’t. It was fueled by distrust of the government’s bureaucrats who held medical degrees.

People once dismissed for their disbelief in conventional medicine are now celebrating a new champion in Washington. Scientists, meanwhile, are trying to figure how they could have managed the pandemic without setting off a populist movement they say threatens longstanding public-health measures.

Some did have a disbelief in conventional medicine. However, what most of us began to disbelieve was not conventional medicine but the non-conventional positions of those medical degree-holding bureaucrats in our medicine-centered agencies and their naked power grabs via their diktats of how us average Americans must during—and after—the Wuhan Virus situation, with their credibility further damaged by their manufactured hysteria about the severity of a virus whose lethality was a small fraction of one percent except for the slice of our population already afflicted with severe comorbidities or who were very old.

Those bureaucrats’ contemptuous dismissal of us and their equally contemptuous dismissal of a range of paliatives and alternative cures—many of which actually did, and do, work, and many more of which, if not effective, also did no harm. We insisted on following actual science, while those bureaucrats pursued their personal power, and in some cases, their pocketbooks.

Those bureaucrats also too often dismissed research that supported those alternative treatments and with equal disdain research that called into question the risks of the Wuhan Virus vaccines on offer. Many (most?) of those researches were, in fact, highly questionable. Some were quite sound, though, and the bureaucrats’ shotgun dismissal of all of them—generally without explanation, holding us average Americans as too grindingly stupid or ignorant to understand—further damaged their credibility.

Nor did those degreed bureaucrats care a farthing about our children—the portion of our population uniquely immune to the virus. Lock them out of school these Know Betters demanded, then required, isolate them from their peers, friends, adults other than their parents—even from their grandparents, uncles, and aunts. We’re seeing now the damaging outcomes of that isolation in lost education and especially in their inability to get along with each other.

No, we trust science. We insist that government bureaucrats trust science, as well, and until they demonstrate that they do, those bureaucrats are demonstrating that they cannot be trusted by us.

Economies, Culture, Regulation

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Greg Ip had a piece in Thursday’s Wall Street Journal touting the strength of our economy, especially in comparison with the European Union’s continental economy. Among other points, he had this regarding the difference between our economy and the EU’s, and this is what I want to focus on in this post.

More important is the role of technology. No EU company worth more than 100 billion euros, equivalent to $108 billion, “has been set up from scratch in the last 50 years,” while all six US companies worth more than $1.08 trillion were created in this period, Draghi said. America’s companies are also faster to adopt technology such as artificial intelligence, which explains much higher productivity in professional services, finance, insurance, and information technology services.

Ip missed, though, that that difference is from a combination of things that are not economic, but things that make an economy more or less capable, that make rapid technological advances possible. Those things are culture and the regulatory environment that puts bounds on what economic players are allowed or required to do.

Our economy has, until relatively recently, players much more willing to run risks and accept mistakes and failures on the way to grand success. That risk-taking runs the gamut from guys like Elon Musk (an outlier, to be sure, but he’s not that far extreme, except in the venues in which he’s chosen to operate) to heads of families striking out, many even before they have families to head, to start their own businesses, risking everything they have just to get started.

The EU has no one willing to run the risks an Elon Musk does. Even the Fiat acquisition of Chrysler was achieved less by a risk-taking entrepreneur leading Fiat than it was an acquisition supported, indirectly, by the US government and EU regulations, since the combined company would be governed by EU rules. Neither do EU individual families start new businesses at anything close to the rate American families do: they’re much more used to government presence in their lives and to reliance on government for their business success.

The EU’s regulatory environment is much more restrictive than ours, as well, for all the recent explosion of regulations governing our business behavior.  EU’s more socialist-in-effect governance that tends to cap performance so the laggards—for whatever reason they lag, good or ill—can keep up. EU regulations are especially restrictive regarding areas that our nation would consider competition and the outcomes of competition.

Gains from a willingness, or government limits on willingness, to run risks aren’t as available to EU economic actors the way they are here.