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Oct. 14, 2021 by James Goodwin

A Post-Neoliberal Regulatory Analysis for a Post-Neoliberal World

This post was originally published on LPE Blog and is part of a symposium on the future of cost-benefit analysis. Reprinted with permission.

Over the last 40 years, the U.S. regulatory system has played an increasingly influential role in redefining our political and economic relationships in fundamentally neoliberal terms. A key but often overlooked institutional force behind this development is the peculiar form of cost-benefit analysis that now predominates in regulatory practice. Building a new regulatory system befitting our vision of a post-neoliberal America requires a formal rejection of prevailing cost-benefit analysis in favor of a radically different approach—one that invites public participation, permits open and fair contestation of competing values at the heart of policy debates, and recognizes and honors our social interdependencies.

The predominant form of cost-benefit analysis—one embraced by neoliberals—finds its theoretical underpinning in the controversial ideology of welfare economics. This theory holds maximized economic growth as its prime directive, to the exclusion of other important social values, such as justice and fairness. Cost-benefit analysis purports to increase welfare by promoting "socially optimal" regulations—that is, regulations that are designed to achieve maximum net benefits.

How do we determine which regulations meet this …

Oct. 11, 2021 by Melissa Lutrell, Jorge Roman-Romero
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This post was originally published on LPE Blog and is part of a symposium on the future of cost-benefit analysis. Reprinted with permission.

Cost-benefit analysis (CBA) is inherently classist, racist, and ableist. Since these are foundational problems with CBA, and are not simply issues with its implementation, they can never be fixed by mere methodological improvements. Instead, the ongoing modernization of centralized regulatory analyses must focus on "moving beyond" CBA, and not on fixing it or improving it. Thus, in implementing President Biden's memorandum on Modernizing Regulatory Review (the Biden Memorandum), the Office of Management and Budget (OMB) should make explicit that regulatory review no longer requires CBA, even—as will be true in the typical case—when regulatory review does demand economic analysis as part of a holistic, multi-factor regulatory impact analysis.

The Biden memorandum endorses a series of goals that are not premised in the …

Sept. 30, 2021 by Lisa Heinzerling
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This post was originally published on LPE Blog and is part of a symposium on the future of cost-benefit analysis. Reprinted with permission.

President Biden has made climate change and racial justice central themes of his presidency. No doubt with these problems in mind, he has signaled a desire to rethink the process and substance of White House review of agencies' regulatory actions. On his very first day in office, Biden ordered administrative agencies to ensure that this review does not squelch regulatory initiatives nor brush aside "racial justice, environmental stewardship, human dignity, equity, and the interests of future generations." At the same time, however, Biden reaffirmed the "basic principles" of a Clinton-era executive order on White House regulatory review, subjecting agencies' major rules to a cost-benefit test.

These twin inclinations – toward acting boldly on climate change and racial justice, and toward judging regulation using cost-benefit …

Sept. 22, 2021 by Clarissa Libertelli
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Amid the latest wave of voter suppression laws across the nation, Senate Democrats last week unveiled new voting rights legislation.

This legislation aims to safeguard the voting rights of millions of Americans. Ensuring access to the ballot for all eligible citizens is, of course, crucial to the health and integrity of American democracy. More than that, though, it is an essential precondition for the effective functioning of our regulatory system. Put simply: When voters’ voices are suppressed, lawmakers and agency officials may be less responsive to their needs — and more likely to favor those of corporations and other special interests. 

Public support for regulations

Corporations often fight any regulations that threaten to restrict their profits; the general public, however, strongly supports protective regulations across the political spectrum. 

This is true even of issues that provoke sharp disagreements among elected officials. When it comes to addressing pollution and …

Sept. 14, 2021 by Martha McCluskey
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This post was originally published on LPE Blog as part of a symposium on vulnerability theory and law and political economy (LPE). Reprinted with permission.

Assumptions about the human condition shape the legal rules and institutions that structure the economy and state. By re-centering law on a clearer understanding of the human subject, vulnerability theory can strengthen law and political economy (LPE) efforts to address accelerating threats to democracy, equality, and the environment. In particular, vulnerability theory responds to neoliberalism’s use of the liberal ideal of individual autonomy to undermine liberal goals of democracy, human rights, and equality. Those goals can be better advanced and defended by affirming the universal human fact and societal value of embodied, embedded beings.

Law plays a leading role in disseminating and legitimating neoliberal ideas. Yet, legal theory has lagged in addressing neoliberalism as a paradigm shift. As Corinne Blalock astutely …

Sept. 10, 2021 by Daniel Farber
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This post was originally published on Legal Planet. Reprinted with permission.

The Biden administration is looking to make big regulatory changes, not least regarding climate change. Yet the White House office overseeing regulations is vacant. The obscurely named Office of Regulatory Affairs and Information (OIRA) has to sign off on all significant regulations. Even the dilatory Donald Trump had nominated a permanent administrator by July of his first year. Biden's delay in filling this important office is hard to defend.

The main reason for the delay is probably that Biden doesn't have the OIRA administrator's boss in place, either. Biden's nominee to head the Office of Management and Budget (OMB) had to be withdrawn when her Senate support evaporated. That was on March 2, however, and there's still no new OMB nomination six months later. Maybe the reason is an inability to find a candidate who can …

Aug. 17, 2021 by Sidney Shapiro, Melissa Lutrell
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The surging COVID-19 delta variant is sending thousands of people to the hospital, killing others, and straining several states' hospital systems to their breaking point. The climate crisis is hurting people, communities and countries as we write this piece, with apocalyptic wildfires, crippling droughts and raging floodwaters. Systemic racism continues unabated, leading to vast economic and environmental injustices. It's beyond time for urgent action, but to get there, the federal government must reform the opaque, biased method it uses to evaluate our nation's public health, economic and environmental protections.

The day President Joe Biden took office, he ordered executive branch agencies to evaluate and reform the regulatory review process to “ensure swift and effective Federal action” to address the urgent problems we currently face. The administration is unlikely to live up to this goal unless the White House addresses …

July 21, 2021 by James Goodwin
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The Biden administration's Environmental Protection Agency (EPA) is currently seeking public input on its efforts to revamp an important Clean Air Act program called the Risk Management Plan (RMP) rule for facilities that produce, store, or use large amounts of dangerous chemicals. It is meant to prevent catastrophes — like the 2017 Arkema explosion in Crosby, Texas — which not only put human lives and health in danger (especially for the communities of color that are disproportionately overrepresented in the shadows of these facilities), but also cause costly disruption for local economies.

My CPR colleagues contributed to a timely new policy brief explaining how the EPA must be particularly attentive to the new and unique threats posed by climate change as it goes about revamping its RMP rule to prevent "double disasters" that will become increasingly common unless chemical facilities are forced to take preventative action. They presented the …

July 20, 2021 by David Driesen
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Environmentalists have complained for years about presidential control of the administrative agencies charged with protecting the environment, seeing it as a way of thwarting proper administration of environmentally protective laws. But the U.S. Supreme Court in two recent decisions — Seila Law v. CFPB and Collins v. Yellen — made presidential control over administrative agencies a constitutional requirement (with limited and unstable exceptions) by embracing the unitary executive theory, which views administrative agencies as presidential lackeys. My new book, The Specter of Dictatorship: Judicial Enabling of Presidential Power, shows that the unitary executive theory is not only bad for environmental policy, but a threat to democracy’s survival, upon which environmental policy and all other sensible policy depends.

In The Specter of Dictatorship, I trace the modern movement toward a unitary executive back to former President Ronald Reagan’s executive order establishing centralized review of agency decisions by …

July 7, 2021 by David Flores, Darya Minovi
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To read the policy brief related to this post, click here.

Update: Read Senior Policy Analyst David Flores and Policy Analyst Darya Minovi's July 8 testimony to EPA.

Four years ago, Hurricane Harvey slammed into the coast of Texas, causing severe flooding in the Houston area and leading to a loss of electrical power throughout the region. During the blackout, a local chemical plant lost its ability to keep volatile chemicals stored onsite cool, and a secondary disaster ensued: A series of explosions endangered the lives of workers and first responders and spurred mass evacuations of nearby residents.

This infamous incident was a classic "double disaster" — a natural disaster, like a storm or earthquake, followed by a technical disaster, like a chemical release or explosion.

Also known as "natech" disasters, these events pose a severe and growing threat to public and environmental health — and to workers …

CPR HOMEPAGE
More on CPR's Work & Scholars.
Oct. 14, 2021

A Post-Neoliberal Regulatory Analysis for a Post-Neoliberal World

Oct. 11, 2021

Modernizing Regulatory Review Beyond Cost-Benefit Analysis

Sept. 30, 2021

Climate Change, Racial Justice, and Cost-Benefit Analysis

Sept. 22, 2021

Why the Attack on Voting Rights Threatens Our Regulatory System

Sept. 14, 2021

Countering Neoliberal Logic with the Vulnerable Human Subject

Sept. 10, 2021

Vacancy

Aug. 17, 2021

The Hill Op-ed: Regulatory Analysis Is Too Important to Be Left to the Economists