Checking Regulations

I read an interesting column in the Wall Street Journal.  It was about Ohio's serious effort to curb regulation.

Regulations are important and necessary in a complex society.  It is the effort to balance individual rights with the impact to society.  From another angle, regulations also protect individuals from potential abuse.  But to ensure the maximum and positive impact of regulations, it should be under review on a consistent basis as society constantly evolves.  However, we generally do not do this.  Instead, we generally add regulations and do not ask if current regulations are still valid.  Or even worse, conflict with existing rules. 

In addition, technology changes and so do society's expectations and needs.  New technology offers more precise and accurate measuring of regulations and the impact of current regulations.  But do we use this new technology? 

However, in economic development, regulation is often viewed as an unknown. Businesses need some level of assurance and consistency.  The method and practice of determining, implementing, and enforcing regulations are a major concern to executive team expanding or siting a new facility.  Uncertainty is a major negative.  Inconsistent rules and enforcement are also negative.  To put it another way, every day a facility is not in operation, revenues are lost. It is a double hit because those revenues cannot be easily recovered. 

That is why Ohio's efforts to review and reduce regulations are an outstanding example of a positive initiative.  Ohio's new law states that for every new regulation implemented, two must be taken off the books. It is innovative and will force regulators to seriously consider new regulations and think hard about useless ones that can be removed. I do recognize that not all regulations impact business. 

Other states are considering this this innovative law.  It is a valiant effort and one worth following over the next few years.

Link to article:  https://www.wsj.com/articles/a-dark-day-for-red-tape-in-the-buckeye-state-11564782053?shareToken=st7989dffe4e4d4cae8feccc7d7717bda3