As Senators Joe Manchin (D - West Virginia) and Kyrsten Sinema (D - Arizona) betray their "moderate"…
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Image of the Day: As Senate Debates Latest Manchin-Schumer "Build Back Better" Iteration, Prescription Drug Prices Aren't the Inflationary Problem

As Senators Joe Manchin (D - West Virginia) and Kyrsten Sinema (D - Arizona) betray their "moderate" charade and join Senate Majority Leader Chuck Schumer's (D - New York) latest tax-and-spend monstrosity, we've highlighted the preposterousness of the claim that imposing drug price controls will in any way address out-of-control inflation.  Price controls will kill innovation, but do nothing to reduce inflation, because prescription drug prices simply aren't the problem.  Once again, economist Steve Moore offers a handy illustration of that truth:

[caption id="" align="alignleft" width="677"] Prescription Drug Costs Aren't the Problem[/caption]…[more]

August 05, 2022 • 01:26 PM

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The Costs of Over-Regulation Print
By Ashton Ellis
Thursday, October 28 2010
The top 43 new regulations are estimated to impose an additional $28 billion in costs on the American economy. Of this increase, 10 regulations from the Environmental Protection Agency (EPA) account for $23.2 billion of the overall increase.

There is a difference between protecting people and micromanaging to the point of absurdity.  Hot on the heels of a Heritage Foundation report detailing the billions of dollars in lost jobs and profits caused by government over-regulation comes a charge from Europeans: TSA regulations are redundant and ineffective.  Will California reverse the trend and suspend its major climate change regulation for the sake of job growth?  Here’s what to watch for next Tuesday and beyond. 

In the run-up to next Tuesday’s elections, the Heritage Foundation (a conservative think tank) released a report detailing the “hidden tax” impacting American economic growth for the fiscal year ending September 30, 2010.  According to the authors of Red Tape Rising: Obama’s Torrent of New Regulation, the top 43 new regulations are estimated to impose an additional $28 billion in costs on the American economy.  Of this increase, 10 regulations from the Environmental Protection Agency (EPA) account for $23.2 billion of the overall increase. 

What are everyday Americans getting for all this?  Thanks to the EPA, they will soon enjoy higher prices for cars, food, appliances and mortgages.  Stricter fuel economy and emission standards will require car companies to pass along the compliance costs to consumers in the form of higher sticker prices.  Mandated quotas for renewable fuels like ethanol will further repurpose corn growing from food to fuel.  Since corn is a major staple in most food, the decrease in supply will increase its cost. 

EPA regulations will have a similar upward spike in the cost of home appliances as new rules dictating energy efficiency standards kick-in.  And, in another hit on the still fragile housing industry, construction sites are being targeted for “effluent” discharges.  The process of eliminating such threats to an environmentalist’s peace of mind includes eliminating more than 7,000 construction jobs, and closing 147 firms.  Then there’s the fact that buyers of newly non-compliant homes will experience higher mortgage costs to the tune of $1,953. 

But wait; there’s more!  As if to cast further doubt on the government’s ability to enact beneficial regulations, European authorities are calling on the Transportation Security Administration (TSA) to scrap its embarrassingly shallow airport procedures.  In a recent speech, the chairman of British Airways criticized the TSA’s shoe and laptop screenings as “completely redundant.”  Officials from the European Union are pleading with the United States government to rationalize its security policies to reduce the burden on passengers traveling into America.  When the bureaucratic apparatus representing a socialist ethos starts questioning a government’s commitment to regulatory sanity, you know we have a problem. 

Californians seem to be waking up to this reality.  One of the most consequential initiatives on next Tuesday’s ballot is Proposition 23.  The measure would suspend implementation of AB 32, Governor Arnold Schwarzenegger’s monument to regulatory excess.  Passed in the name of reducing global warming, the law seeks to return emissions to 1990 levels by 2010.  That kind of rapid reduction requires costly upgrades and retrofits in order to avoid heavy fines. 

Business owners got the message and are fleeing the state in droves.  Thus, Prop 23 would sideline AB 32 until California’s unemployment – currently 12.5% – drops to 5.5% or below for four straight quarters.  If passed, Prop 23 would be an important first step in reminding the environmental left that emissions targets are luxuries; jobs are necessities. 

Ultimately, the costs of over-regulation amount to unreported taxation on Americans’ life, liberty, property and their pursuit of happiness.  No one feels safer after partially disrobing in an airport, and no one’s quality of life is improved when economic opportunity is sacrificed on the altar of environmentalism.  What’s needed is a comprehensive reordering of the government’s regulatory priorities.  That process should start as early as next Tuesday night. 

Quiz Question   
Taiwan first came under full Chinese control in what century?
More Questions
Notable Quote   
 
"Small business confidence has hit an all-time low as the majority of Main Street expects runaway inflation and a Federal Reserve that is incapable of engineering a soft landing for the economy, leading to revenue declines and staffing cuts across sectors.The majority of small business owners (57%) taking part in the CNBC/SurveyMonkey Small Business Survey for Q3 2022 think the recession has already…[more]
 
 
—Eric Rosenbaum, Senior Editor, CNBC.com
— Eric Rosenbaum, Senior Editor, CNBC.com
 
Liberty Poll   

Do you believe the tax increases and hundreds of billions of dollars in new spending in the so-called ‘Inflation Reduction Act of 2022’ - negotiated behind closed doors by Senators Manchin and Schumer - will increase or decrease inflation if passed?