The Administration’s tactics on this issue are far from surprising. With 38% of the country strongly disapproving of President Obama’s performance, and jobs remaining the nation’s top priority, the White House is trying to boost its credentials wherever possible. However, this absurd attempt to frame business stifling regulations as a tool to increase employment indicates that the President might be running out of tricks. Consider that the EPA report showing costs of $109 billion by 2020 only takes into account existing regulations.
EPA intends to ramp up regulations. A recent economic modeling analysis by the American Council for Capital Formation predicts that by 2014, heightened EPA regulations will cost the nation between 476,000 to 1,400,000 jobs and $47 billion to $141 billion in GDP.
To make matters even worse, of course, the Administration is calling for higher taxes to address budget deficits and a rising national debt. But a better option exists – pro-growth tax and regulatory reforms. By streamlining the tax code, and relieving U.S. job creators from the heavy burdens of increased taxes and regulatory expenses, hiring will improve and GDP will be unleashed.
It will be private sector growth led by small businesses, not increased government regulation and taxes, that will lead the nation out of the current economic slump. Unfortunately, the President and his ambitious bureaucratic regulators fail to grasp this fundamental economic truth.