President Obama has been traveling around the country touting the robustness of the nation’s economy during his two terms. You might call it the Wishful Thinking Tour.
“From 1950 to 2000, the U.S. economy grew at an average rate of 3.5% annually,” Hoover Institution economist John Cochrane pointed out in a recent Wall Street Journal op-ed. “Since 2000, it has grown at half that rate — 1.76%. Even in the years since the bottom of the great recession in 2009, which should have been a time of fast catch-up growth, the economy has only grown at 2%.”
A Wall Street Journal editorial on February 5 provides context to that slow economic growth: “The overriding problem continues to be a lack of business confidence and investment, which leads to slower growth, which gives the U.S. economy a lower margin for absorbing growth shocks from around the world.”
But the crisis in business confidence and investment is only a symptom. The underlying disease is the panoply of anti-innovation policies, actions, and attitudes of the Obama administration. Obama’s White House has been an outlier — to the high side — in the number of “economically significant” regulations (those that are expected to cost Americans $100 million or more annually) it has added. According to Daniel Pérez, of the Regulatory Studies Center at George Washington University, “As of the end of January 2016, Obama had 393, with 12 months remaining in his administration,” and the most recent of the administration’s “unified agendas,” released last November, indicated that more than 2,000 regulations are in the pipeline, of which 144 are deemed economically significant, a new record.
The regulations cut a huge swath through the American economy. They include labeling requirements for pet food, new test procedures for battery chargers, mandated paid sick leave for contractors, and speed governors for trucks, and a host of new rules that will limit energy consumption and increase the price of household appliances.