Commentary Archive

Disclosure

CFPB Should Consider a More Dynamic Approach to Prepaid Debit Card Regulation

April 01, 2015

By Blake Taylor, Policy Analyst
Last December, the Consumer Financial Protection Bureau proposed rules intending to improve consumers’ understanding of their choices in the prepaid debit card market and to protect them from unreasonable fees. There is little to no evidence that the proposal will have desirable consequences related to either consumer or seller behavior. What is likely is that the rule will increased compliance burdens for sellers and limit consumer choice.

Power plant

Justices debate benefits and costs of EPA mercury power plant rule

March 31, 2015

By Susan E. Dudley, Director
The Supreme Court last week heard oral arguments in Michigan v EPA regarding “whether the Environmental Protection Agency unreasonably refused to consider costs in determining whether it is appropriate to regulate hazardous air pollutants emitted by electric utilities.” The regulation being considered is a key part of the Obama administration’s environmental agenda and would require coal-fired power plant operators to install equipment to reduce mercury and other air pollutants. Section 112 of the Clean Air Act directs the EPA to issue regulations that are “appropriate and necessary” to control hazardous air pollutants, including mercury. Thus, one area of debate is whether a standard that imposes very large costs relative to benefits is “appropriate” under the meaning of the statute.

Illustration of America wrapped up in red tape

Improving Regulatory Accountability: Lessons from the Past, Prospects for the Future

February 17, 2015

By Susan E. Dudley, Director
There are now more than 70 federal agencies, employing almost 300,000 people, that write and implement regulations. Every year, they issue tens of thousands of new regulations, which now occupy over 175,000 pages of code. Concerns over the accountability of what some have called the "fourth branch" of government have led all three branches of government to take steps to exercise checks and balances. Like the bipartisan regulatory reform efforts of the 1970s and 1980s, reforms today could spur economic growth and improve the welfare of American families, workers and entrepreneurs.

money

One-Size-Fits-All Regulations are a Bad Deal for Low-Income Americans

February 03, 2015

By Sofie E. Miller, Senior Policy Analyst
We're all affected by regulations; they change our circumstances and the choices that are available. Regulations have benefits and costs, but often the people who benefit from regulations aren’t the same people who bear the costs. Unfortunately, for many regulations, the costs are borne by America's poorest households. Our research at the George Washington University Regulatory Studies Center has identified at least three ways in which regulations disparately impact the poor: through upfront costs that may not be offset by long-term savings, by increasing commodity prices, and by over-regulating risks.