Awkward Facts Kill the Regulatory Uncertainty Zombie

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

Is a tidal wave of both existing and upcoming new regulation responsible for the sluggish state of the economy? This is one of those arguments that’s so transparently dumb that I sometimes think its only purpose is to force liberals to waste time arguing about it. It’s like that old story about LBJ spreading a rumor that his opponent was a pig-fucker. You can’t say that, it’s a lie, Johnson’s campaign manager told him. “I know,” he replied, “I just want to make him deny it.”

Maybe that story is true, maybe it isn’t. But it fits. Even when we’re denying that regulations are responsible for our poor economy, we’re talking about regulations. And the more people hear about regulations, no matter what the context, the more plausible it seems like they might be a problem. And of course, it also distracts us from talking about other stuff. It’s a twofer.

Still, you gotta fight it. EPI’s Larry Mishel wrote a pretty definitive takedown while I was off in the Bay Area with lousy WiFi reception, and among other things he notes that business investment—which ought to be highly sensitive to the regulatory climate—has recovered considerably better over the past two years than it did during the first two years of the Bush recovery:

The data show that investment has increased more in this recovery than in the prior two recoveries and roughly the same as that of the 1980s recovery. It is interesting to note that there was no growth in investments (as a share of GDP) in the George W. Bush recovery. That means that this recovery, with Obama regulations pending, is far more investment-led than the recovery under the deregulatory Bush administration. So, investment does not look like it is being held back, at least relative to other recoveries and the size of the market.

The chart is below. Bottom line: If demand were high but regulation was holding back recovery, then investment levels would be weak, employer surveys would be full of complaints, and businesses would be making lots of temporary hires in order to sell more stuff now without the danger of adding permanent payroll. But none of these things is true. Our problem is high debt levels and weak demand, not business-deadening regulations.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate