Economic Cost of Over Regulation

 

As a citizen and an elected official, I am increasingly aware of the costs to taxpayers, and to the economy, of regulation. It does not take a genius to figure out that the laws, rules, and regulations that have evolved in the recent past, contribute to a debilitating drag on our economy.

I am not advocating a radical revision of our system of governance. There are good reasons for many of the regulations. What I am saying, is that it is time that we, as a government, and as a people, take a comprehensive, holistic view of the bureaucratic universe…and start finding common sense ways to protect what needs protecting, and quit spending taxpayers’ money on that which does not. That we make sure to assess the true cost of regulations before we allow them to be put in place.

Let me give you a few examples:

Anybody can come to Wyoming, and with very little basis, demand that yet another species be added to the Endangered Species list. When they do this, the State of Wyoming is obligated to spend an enormous amount of money in time, personnel, and equipment to refute these claims…many of which ultimately wind up as frivolous and unmerited. Money that could be used elsewhere to greater advantage when it comes to protecting our precious natural environment.

Think of what all of the hoopla around the Sage Grouse is costing just in direct costs. Think of the lost revenue from oil and gas developments that have already been delayed, or completely eliminated, because of the uproar around this one example. Think of what that has cost our local economies.

It has become clear in working with coal bed methane projects on our ranch, that it is now nearly impossible for a family to work with a company to develop beneficial uses of the water because of short-sighted, poorly conceived, and inappropriate regulation.

I recently found out that every single stream in Wyoming is defaulted into a designation as a “primary” stream—meaning that it has flowing water suitable for swimming, fishing, and recreational boating. This is patently absurd in our semi-arid region. Far more practical, and far less expensive would be to simply change the default designation of all streams in Wyoming to “dry.” Stop spending the dollars to send personnel out to every little gulley and draw in the State—five different times to attempt to take water samples, take photographs, complete documentation, and file a ream of paperwork to establish that the default is not true. Anybody can access Google Earth, and can tell which draw runs water, without ever leaving their desk.

There is much talk about “affordable housing,” but very little discussion about how the plethora of rules, regulations, and requirements contributes to the high cost of housing. I have had developers tell me that they can build housing that the low middle income person can afford, but in order to do so they need the flexibility to build in greater density, to not have to put so much money into mandated infrastructure details like curbs and gutters, and other cost-saving devices. As cities, towns and counties come seeking more and more State dollars to provide workforce housing, I would encourage them to turn inward and take a long, hard look at their own zoning regulations and requirements, and see how much that is increasing the cost of building.

I have an elderly relative who owns several acres inside the city limits of Wheatland. They would like to sell it. But the town of Wheatland’s regulations prevent them from doing so without subdividing. So, what is the end result? They keep paying the taxes, because that is the easiest thing for them to do. As my relative says, “We’re old…we don’t want to go through all of that,” and any potential developer, and any potential family who could use the housing on that acreage, are out of luck. I doubt this is a problem found only in Wheatland. Every govenment could find examples of short-sighted, counter productive, and flat out expensive regulations on their books if they took a good, hard look.

My point is that there are many and various costs associated with over regulation. I encourage citizens and colleagues to look beneath the obvious, and to ferret out not only the direct cost of a regulation, but the wide-ranging ramifications, and the unintended consequences, and the opportunities stymied that all add up to a tremendous drain on our  resources.  We may have limited ability to do much about federal laws, but we ought to try to do what we can.

A Time for Reflection

 

The holiday season is upon us. Regardless of your religious persuasion, or complete and total lack thereof…the time between Thanksgiving and the New Year, marks a sort of wrapping up, and a hopeful eye to the future.

 

We have a lot to be grateful for in this nation, this state, and most particularly our own, individual places within the big schema. We have plenty of food, and shelter, and enough to share. I have heard it said, that Americans are the most generous people in the world, and I believe it.

 

Most of us feel very safe. We are concerned about those who are not. And we try to do what we can to make it safe for everyone. If we are the praying type, we are praying for our military men and women whose duty is to put themselves in harms way, to fight for our safety, security and freedom.

 

We tell our kids that the only things really necessary for a decent life are food, and a warm place to lie down. Beyond that, everything else is a luxury to be appreciated, and to not let the pursuit for more and more stuff take control of their lives, and to never let it get in the way of their most important relationships.

 

In a letter we wrote to our kids, we told them that Honesty is the most important thing—if they can preserve their integrity they will be able to withstand the most severe challenges that Life may bring.

 

In our opinion, the virtue that is right next to truthfulness in every aspect of life, is Kindness. Common courtesy and thoughtful consideration make for a pleasant way of being—make a body a joy to be around, every single day—and means they will always be surrounded by loving family and friends, and never be lonely for long. Take care of those around you, and you take care of yourself.

 

All of us, I think, are disturbed by the idea that the entire national economy hinges on how much we spend for Christmas. That is not what this season is about. I don’t care if you are a Christian, a Muslim, a Jew, a Pagan, a Buddhist, a Taoist, an Atheist, or an Agnostic, or any other of the many, and multi-faceted ways of spiritual being that there are in the world…spending money is not what it is about. Universally, what the season does represent, is a time to appreciate and honor our neighbors, family, friends, all of those we hold close and cherish. It is a time to help those in need. It is a time to express our gratitude to all of those who touch our lives in small, sometimes insignificant ways, that make things easier…like the UPS driver, and the grocery clerk, and many, many others.

 

Stay in touch. Our oldest friends and family are the most important to us as we grow older. Remember the power of Love.

 

Perhaps, more than anything else, this season reminds us that the big wheel of life, and the big mystery of Time, keeps traveling relentlessly onward. One year ends, and another approaches. We don’t know what that year ahead of us will bring. But we have Hope. Hope, the purest expression of what it means to be human, on this Earth.

 

My hope for all of you is that this holiday season finds you, and all of yours, safe, happy, and hopeful.

The National Animal Identification Fiasco

 

The U.S. Department of Agriculture (USDA) is currently in the process of implementing the National Animal Identification System (NAIS). NAIS is designed to identify all livestock animals and poultry and track them. When the program is fully implemented, the USDA expects that NAIS will be able to identify all premises on which the animals are located and all animals that have had direct contact with a disease of concern within 48 hours of discovery. The USDA is implementing the program without explicit Congressional authority or oversight.

The State of Wyoming is currently accepting federal grants to implement the “voluntary” program, and is already using subtle tricks like an innocuous looking premise registration on the back of every brand registration form, and coercing children to register their parent’s premises in order to participate in livestock events at county fairs. In order to head off this massive, and misguided federal bureaucratic power grab, legislation will be introduced at the upcoming legislative session which directs that the State shall not establish any voluntary or mandatory animal identification system other than our long-established livestock brand program, and that will prohibit state agencies from spending any appropriated funds to that end.

While there has not been much attention given to this issue, it has huge implications for every American, not just those involved in the livestock industry. The NAIS would apply to every person who owns even one livestock animal or poultry, including horses, chickens, cows, goats, sheep, swine, turkeys, and bison. Each person would be required to: 1.) register their property with the state; 2.) identify each animal with an internationally-unique 15 digit number; and 3.) track “events” and report them to a government accessible database within 24 hours. The sole purpose of this program is to provide 48-hour traceback of all animal movements in case of disease outbreak. Additionally, the government and industry organizations have urged the program as a means to improve the export market.

While the USDA states that the program is currently voluntary at the federal level, it has been providing fund to the States, including Wyoming, to implement the program. With the encouragement of this federal funding, several states have already implemented mandatory programs. Moreover, several States have registered individuals in the program without their consent, or by using coercive measures, while claiming that the program remains voluntary.

NAIS represents a massive intrusion into people’s lives, because individuals will have to provide detailed information about their property, businesses, and their own movements to government and private databases. There is a huge burden on property rights, because the premises registration number will attach to the land forever, and your right to manage your land and animals will be restricted. It will carry high costs—registration ,tagging, and reporting all carry costs in both time and money. We will lose small farmers and ranchers, many will be unable to afford the program, or unwilling to accept the government intrusion. There will be damage to our economy, because businesses that rely on small farmers such as sales barns, supply stores, and even tourism, will be harmed. It will reduce choices and increase costs for consumers. It is a violation of many American’s religious beliefs. Most notably of all, it greatly increases government bureaucracy and is a gigantic waste of taxpayer dollars.

Even though the USDA is advocating this program, it has not performed a cost analysis of the program. Costs for similar programs in other countries are estimated to range from $37 per head to $69 per head. With over a hundred million cattle and millions of other livestock animals in the US, the NAIS will likely cost producers, businesses, and taxpayers tens of billions of dollars.

The NAIS will not provide benefits to justify those costs. The stated purpose of the NAIS is to provide 48 hour traceback to address animal disease. But the NAIS does not address the critical issues for disease prevention and control such as the specific disease, including its cause, prevention, transmission, and treatment options. The proponents of NAIS also ignore the fact that government and industry have already established systems for tracking animals like the tried and true system of livestock brands that has been in place in Wyoming since territorial days.

Contrary to claims, the NAIS will not protect against bio-terrorism. Terrorists are unlikely to target hobby animal owners and small ranchers. Microchips are vulnerable to cloning and computer viruses. The type of microchip specifically recommended for horses and cattle, the ISO microchip, is designed to be reprogrammable, so anyone can easily change the numbers. The large databases will provide an easy target for hackers. Indeed, even without intentional tampering, the large databases will be unmanageable, as has already been found in Australia.

The final stated justification for the NAIS is to improve the export market. There are better ways to reach agreement with Japan and other foreign countries, including allowing meat packers who wish to export their beef to test for Mad Cow disease. If tracing is a market benefit, let the market implement it, not a mandatory government program using our tax dollars.  Any such program should be voluntary, non-coercive, allow for true competition, and paid for by the participants.   

I believe that the NAIS infringes upon the property and private affairs of individuals in direct violation of our Constitutional rights, including the right to due process of law, equal protection, religious freedom, and freedom from unreasonable search and seizure. I believe that the NAIS is likely to have serious, unintended consequences on everyone who owns even one animal, including small farms and ranches and thousands of private citizens who own animals for companionship, recreation, and subsistence. I believe that the NAIS could have a significant negative impact on the entire rural economy of the state and the country. If you agree that it is time to stop the implementation of NAIS in Wyoming, contact your legislators and ask them to support the legislation. If you would like to investigate further, I recommend the Farm and Ranch Freedom Alliance, and their website at www.farmandranchfreedom.org. As always, feel free to contact me about this, or any other issue, at 307-685-8248 or sue.wallis@vcn.com.