Obama’s Deregulation Orgy Yields Big Orgasm for Big Business

In the Wall Street Journal yesterday, President Obama hinted at an ensuing orgy of deregulation intended to appease Wall Street and Corporate America. He signed an executive order requiring federal agencies to ensure that all regulations promote economic growth, and he ordered a government-wide review of existing regulations to remove any that place “unreasonable restrictions” on business, or that are “just plain dumb.” Obama’s pronouncement echoed US Chamber of Commerce president Tom Donohue, who called for regulations to be “swept away.”

America, We Will Get There!

In the article, Obama said he wanted “less intrusive” regulations that balanced the “costs and benefits,” and more input from “experts, businesses and ordinary citizens.” In other words, he is asking for an intensification of the process already in place, where industry lobbyists write the regulations and policies and hand them over to law makers who rubber stamp them. “Balancing” in this case means increased benefits for big business, and increased externalized costs (e.g., injury, pollution and death) being incurred by the public.

While Obama paid lip service to maintaining or tightening regulations that protect consumers, workers and the environment, there is nothing in the executive order that requires any strengthening of existing regulations. On the contrary—the entire tone of the letter implied that the current system is unfriendly to business and needed easing (or outright gutting). He never even mentions the words “worker,” “food,” or “toxins.” Rather, he apes back the euphemisms and myths of the ruling elite, like “overregulation” creating “uncertainty,” which stifles “job creation.” Yet U.S. corporations earned record profits last year, due in part to ongoing tax cuts, bailouts, downsizing, and by making those who still have jobs work harder and longer for equal or lower pay. There is no reason to believe that deregulation would make the bosses suddenly start hiring, especially if they are getting sufficient productivity from those currently employed.