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21. Building Infrastructure in Real Time: Avoiding Regulatory Paralysis

Author:
Committee for Economic Development of the Conference Board
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
The physical infrastructure base of the US economy, once an advantage in global competition, has become a liability. This problem has multiple causes, several of which CED has addressed in recent policy statements, and our nation’s elected policymakers are now taking up the need for additional funding. But the nation needs not only adequate funding but also a more-efficient regulatory process for our infrastructure investment—choosing the right projects, with the minimum delay, and executing them at the least possible cost. Regulatory paralysis is one of the causes of our infrastructure shortfall. It needs attention if we are going to spend our tax dollars on infrastructure wisely and efficiently so that the US economy remains globally competitive. Streamlining regulatory procedures, promoting competition, and cutting red tape across federal, state, and local governments are key to increasing investment, decreasing cost, and maximizing efficiency. Business as usual will not suffice. It takes too long and costs too much to deliver infrastructure projects, preventing us from achieving the advancements and improvements that a future-focused, competitive economy requires. CED has consistently advocated “smart regulation,” subjecting new regulations to rigorous cost-benefit analysis and reviewing existing regulations for continuing cost effectiveness to enhance efficiency and achieve quicker execution, greater benefits, and lower costs. With long delays between project conception and execution, and often multiple layers of jurisdiction and review, a smart regulation approach could ensure that the rules governing review and permitting of projects address all important concerns and ensure that net benefits are maximized over time at all levels of government on a comprehensive and timely basis.
Topic:
Economics, Infrastructure, Governance, Regulation, Business, Economic Policy, and Strategic Competition
Political Geography:
North America and United States of America

22. Do US firms have an incentive to comply with the FLSA and the NLRA?

Author:
Anna Stansbury
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
To what extent do US firms have an incentive to comply with the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA)? Stansbury examines this question through a simple comparison of the expected costs of noncompliance (in terms of legal sanctions) to the profits firms can earn through noncompliance. In the case of the FLSA minimum wage and overtime provisions, typical willful violators are required to pay back wages owed and in some cases additional penalties, if detected by the Department of Labor (DOL). Based on available data on the penalties levied, a typical firm would need to expect a chance of at least 78-88 percent that its violation would be detected in order to have an incentive to comply with the FLSA. In practice, the probability of detection many firms can expect to face is likely much lower than this. In the case of the NLRA, a firm that fires a worker illegally is required to reinstate the worker with back pay if the violation is detected. Based on empirical estimates of the effect of unionization on firm profits, a typical firm may have an incentive to fire a worker illegally for union activities if this illegal firing would reduce the likelihood of unionization at the firm by as little as 0.15-2 percent. These analyses illustrate that neither the FLSA nor the NLRA penalty and enforcement regimes create sufficient incentive to comply for many firms. In this context, the substantial evidence of minimum wage and overtime violations, and of illegal employer behavior toward unions, is not surprising.
Topic:
Labor Issues, Regulation, and Economy
Political Geography:
North America and United States of America

23. Will industrial and agricultural subsidies ever be reformed?

Author:
Gary Clyde Hufbauer
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Open Sub-navigation BackOpen Sub-navigation Publications Back Policy Briefs Working Papers Books PIIE Briefings Open Sub-navigation Commentary Back Op-Eds Testimonies Speeches and Papers Topics & Regions PIIE Charts What Is Globalization? Educational Resources Open Sub-navigation Back Senior Research Staff Research Analysts Trade Talks Open Sub-navigation Back RealTime Economic Issues Watch Trade & Investment Policy Watch China Economic Watch North Korea: Witness to Transformation 中文 Open Sub-navigation Back All Events Financial Statements Global Connections Global Economic Prospects Stavros Niarchos Foundation Lectures Trade Winds Open Sub-navigation Back News Releases Multimedia Media Center Open Sub-navigation Back Board of Directors Staff Employment Contact Annual Report Transparency Policy POLICY BRIEF VIEW SHARING OPTIONS Will industrial and agricultural subsidies ever be reformed? Gary Clyde Hufbauer (PIIE) Policy Brief21-5 March 2021 Photo Credit: REUTERS/Denis Balibouse One economic argument for government subsidies is that they are necessary to compensate firms and industries for benefits they provide to society at large but cannot capture in the prices they charge for goods or services. For example, subsidies to renewable energy are defended because renewable energy limits carbon emissions. When a major economy subsidizes extensively, however, its trading partners are drawn into the game, with losses all around. As the prisoner’s dilemma suggests, a better outcome would entail mutual restraint. But the goal of mutual restraint is no less difficult in international trade than it is in international arms control. Both the European Union and the US federal system try, in different ways, to regulate industrial subsidies. Hufbauer examines efforts to contain unjustifiable subsidies and proposes modest improvements, bearing in mind that as countries struggle to overcome the global economic downturn resulting from the COVID-19 pandemic, there is little appetite for restoring a free market economy—one in which firms compete with minimum government assistance or regulation. Selective upgrading of the rulebook may nevertheless be possible.
Topic:
Agriculture, Government, Reform, European Union, Regulation, Manufacturing, Industry, COVID-19, and Subsidies
Political Geography:
Europe, North America, and United States of America

24. U.S.-Thai Economic Prospects–Turning A New Page

Author:
Judy A. Benn
Publication Date:
11-2021
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Judy A. Benn, Former Executive Director American Chamber of Commerce in Thailand, explains that “for Thailand to take full advantage of post-pandemic opportunities and reignite its economy to make-up for the last 18 months, the nation will need to capitalize on its centralized geographic location and position as one of Southeast Asia’s strongest manufacturing bases.”
Topic:
International Trade and Finance, Treaties and Agreements, Bilateral Relations, Regulation, and Economy
Political Geography:
North America, Thailand, Southeast Asia, and United States of America

25. In Harm’s Way: Smart Regulation of Digital & Network Technologies

Author:
Aspen Digital
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Misuse of personal information, manipulation of platforms to influence elections, and failure to extend broadband to underserved areas are a few of the problems facing governments at all levels. Increasingly, policymakers are taking up the challenge of shaping legal solutions to these problems, only to find they lack both the tools and technical expertise to regulate wisely, meaningfully and efficiently. Given the current technological environment, what goals are appropriate to assure that emerging technologies are used to benefit the populace and do not harm society? Participants of the 34th Aspen Institute Conference on Communications Policy, which took place in Aspen, Colorado in August 2019, examined regulatory frameworks that can provide a successful model for future problems as they inevitably appear. The report of the Conference explores approaches to impede harms from digital and network technologies that address user protection, promote consumer choice and competition, and foster access to essential services.
Topic:
Science and Technology, Communications, Regulation, and Digitization
Political Geography:
North America and United States of America

26. Cooperation in Trade in Services

Author:
Akshay Mathur and Purvaja Modak
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Gateway House: Indian Council on Global Relations
Abstract:
The shift in the global trend from trade in goods to trade in services, especially digital services has focused attention on the necessity of a modern and robust regulatory framework for it. The bilateral steps by India and Canada outlined in this paper can feed into current efforts by multilateral institutions to develop a universal framework for capturing services trade data.
Topic:
International Cooperation, Regulation, Institutions, Services, and Trade
Political Geography:
South Asia, Canada, India, and North America

27. An Effect-Centric Approach to Assessing the Risks of Cyber Attacks Against the Digital Instrumentation and Control Systems at Nuclear Power Plants

Author:
Nancy Gallagher, Charles Harry, and Jor-Shan Choi
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Center for International and Security Studies at Maryland (CISSM)
Abstract:
Cyberattacks against the digital instrumentation and control (DI&C) systems in nuclear power plants (NPPs) are of grave security concern. The US Nuclear Regulatory Commission (NRC) requires all NPPs to protect critical digital assets that support safety, security, and emergency preparedness functions against cyberattacks.1 Other standards bodies like the International Society of Automation (ISA) and the International Electrotechnical Commission (IEC) have also developed standards that address cybersecurity for industrial control systems (ICS) including DI&C.2 Due to concerns for security, relevant stakeholders such as regulators, plant operators, information technology (IT) and operation technology (OT) staff, and equipment suppliers are sometimes reluctant to reveal in technical detail about vulnerabilities posed by DI&C systems. Yet, because some types of cyberattacks against an NPP may cause core damage or significant release of radioactivity, harming the plant, the public and the industry, the safety implications of potential cyberattacks should be evaluated. This divide between security and safety is a challenge for stakeholders focused in cyber security for NPPs. To bridge this security and safety divide, this study proposes and demonstrates a methodology for assessing and addressing the safety consequences of cyber events that disrupt one or more parts of the DI&C systems at NPPs. The methodology builds on the “effect-centric” cyber risk assessment framework developed by the Center for International and Security Studies at Maryland (CISSM). It is used to analyze two historical cyberattacks and one hypothetical attack scenario. As the focus is on plant safety, these assessment, evaluation, and analysis can be candidly and openly discussed with the goal of finding the best defense to thwart the specific cyberattack.
Topic:
Security, Governance, Nuclear Power, Cybersecurity, and Regulation
Political Geography:
North America and United States of America

28. Toward a Discursive Approach to Growth Models Social Blocs in the Politics of Digital Transformation

Author:
Sidney Rothstein
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The growth models perspective analyzes the role of social blocs in crafting countries’ eco- nomic policies, but its treatment of business power as purely structural prevents it from ad- dressing an important question in the politics of digital transformation: How have new sec- tors with miniscule economic footprints been able to influence economic policy? This paper explores how tech and venture capital successfully lobbied for financial deregulation at the beginning of digital transformation in the United States. The paper argues that explaining the role of social blocs in digital transformation requires incorporating discourse analysis and develops a conceptual framework around three discursive components in the dynamics of social blocs: coordination, persuasion, and performativity. This framework contributes to theory development in the growth models perspective and illustrates how the concept of social blocs can help make sense of the politics of digital transformation.
Topic:
Regulation, Digital Economy, Financial Institutions, and Discourse
Political Geography:
United States and North America

29. Shadow Lobbyists

Author:
Rocco d'Este, Mirko Draca, and Christian Fons-Rosen
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Special interest influence via lobbying is increasingly controversial and legislative efforts to deal with this issue have centered on the principle of transparency. In this paper we evaluate the effectiveness of the current regulatory framework provided by the US Lobbying Disclosure Act (LDA). Specifically, we study the role of ex-Congressional officials who join US lobbying firms in positions that could be related to lobbying activity but without officially registering as lobbyists themselves. We find that firm lobbying revenues increase significantly when these potential ‘shadow lobbyists’ join, with effects in the range of 10-20%. This shadow lobbyist revenue effect is comparable to the effect of a registered lobbyist at the median of the industry skill distribution. As such, it is challenging to reconcile the measured shadow lobbyist effect with the 20% working time threshold for registering as a lobbyist. Based on our estimates, the contribution of unregistered ex-Congressional officials could explain 4.9% of the increase in sectoral revenues, compared to 24.0% for the group of registered officials.
Topic:
Corruption, Government, Politics, Regulation, Money, Lobbying, and Revolving Door
Political Geography:
North America and United States of America

30. Smart Regulation in a Post-COVID-19 Economy

Author:
Committee for Economic Development of the Conference Board
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
The COVID-19 pandemic has put regulation issues front and center in every American’s life. Within a few short weeks, 41 out of 50 states have issued stay-at-home orders,1 and regulations governing many other aspects of all Americans’ public lives are now imposed because of COVID-19. Among a long list of constraints, nonessential businesses, many of them small businesses, have been required to cease or sharply curtail their services. Schools have been closed, access to parks and outdoor spaces has been restricted, and other staples of all Americans’ public lives, including large gatherings, have been restricted. On the other hand, and more than ever before, Americans have seen other regulations lifted rapidly, particularly in the heavily regulated health care sector. Constraints on testing, laboratories, out-of-state health care workers, vaccine R&D, telemedicine, ventilator production, and infrastructure expansion have been relaxed. Even more extensive relief has addressed the unprecedented havoc that COVID-19 has unleashed on American society, public health, and the economy. Restrictions on work at home, online courses at colleges and universities, the transport of food and alcohol, and hours truck drivers can be on the road are all being lifted or relaxed to meet the demands of the crisis. Restrictions on the production of hand sanitizer and the amount that the Transportation Security Administration (TSA) allows passengers to carry on airplanes have also been relaxed.
Topic:
Regulation, Economy, Business, and COVID-19
Political Geography:
North America and United States of America