Secretary Geithner: Regulations Will ‘Raise Costs of Business’ but that is ‘the Necessary Outcome’Posted by on October 12, 2011
Treasury Secretary Timothy Geithner offered a revealing insight into the Obama Administration’s attitude about regulations on Thursday when he testified before the Financial Services Committee.
After Oversight and Investigations Subcommittee Chairman Randy Neugebauer told the Secretary he is worried about the cumulative impact that the Dodd-Frank Act’s 400 regulations will have on the economy, Secretary Geithner responded: “I think you are too worried about the cumulative impact of these financial reforms on the basic business of finance in the United States.”
That’s an amazing admission from the Secretary. The “objective” of these regulations, he says, is to “raise costs” for businesses. Not only is that “their objective,” but it is “the necessary outcome”. That will indeed “have consequences” – fewer jobs.
Whether it’s Obamacare, Dodd-Frank or the EPA, one thing this Administration is good at is creating more of “that stuff,” to use Secretary Geithner’s colloquial term. The website of the President’s Office of Information and Regulatory Affairs shows there are 4,257 new regulatory actions in the works, of which at least 219 will have an economic impact of $100 million or more.
Officials in the Obama Administration may not be worried about the cumulative impact all these Dodd-Frank regulations are having, but job creators certainly are – and with good cause.