Obama tries to streamline regulations in his latest executive order
Washington, D.C., United States (AHN) – President Obama ordered a review of government regulations Tuesday in an effort to eliminate administrative obstacles to business and industry. He announced the review in a commentary published by The Wall Street Journal, saying he wanted to balance the need for regulation with the interests of economic growth.
“We are seeking more affordable, less intrusive means to achieve the same ends – giving careful consideration to benefits and costs,” Obama wrote. “This means writing rules with more input from experts, businesses and ordinary citizens. It means using disclosure as a tool to inform consumers of their choices, rather than restricting those choices. And it means making sure the government does more of its work online, just like companies are doing.”
He said he did not want to get rid of government regulation because it protects people from out-of-control industries. Obama mentioned as an example the financial industry, whose lax credit policies are blamed for the collapse of the housing market and worldwide economic recession that is only starting to ease.
Lax regulation of the financial industry “nearly led to the collapse of the financial markets and a full-scale Depression,” Obama wrote. However, he said some regulations are “placing unreasonable burdens on business.”
An executive order from Obama tells government agencies to eliminate redundant, unnecessary and conflicting rules. In his Wall Street Journal commentary, he mentioned a dispute over the artificial sweetener saccharin as an example. The Environmental Protection Agency listed saccharin as a hazardous material while the Food and Drug Administration considered it safe for human consumption.
Obama’s executive order appears to seek better relations with the business community after he endured criticism for regulations over the past two years that some economists said represented big government flexing too much muscle over industry. A senior administration official, who spoke to reporters during a telephone conference Tuesday, said the executive order is unlikely to dramatically change government regulations but would be “making them more effective.”
“What we need to do is to support our continued economic growth,” he said.
The Republican-led House Oversight and Government Reform committee plans to hold hearings this year on how federal agencies regulate businesses.
Rep. Darrell Issa (R-Calif.), chairman of the committee, said he welcomed Obama’s executive order. “The anti-business policies of the past have hurt job creators, small and large,” Issa said in a statement.
The National Association of Manufacturers also issued a statement supportive of Obama.
“Manufacturers have been saying for some time that overregulation is harming job creation and stifling economic growth,” the association’s statement said. “This is an opportunity for the president to demonstrate results by eliminating unnecessary regulations already in the pipeline or delaying poorly thought-out proposals that are costing jobs.”
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