The Future of the Regulatory State
Today, in @theprospect, we’re debating the proper role in a progressive administration for an obscure agency called the Office of Information and Regulatory Affairs. You’re going to want to check this out. Thread👇 (prospect.org/day-one-agenda…)
First up, @ddayen sets it up: “There is little debate on the left that OIRA has become an impediment to bold governance, but there is some debate about the way forward.” He notes the important role of the Prospect in providing a debate space “outside of the Twitter cacophony”
Next, @rdnayak and I lay out why OIRA’s role as a regulatory gatekeeper has often amounted to a thumb on the scale against aggressive action on preparedness and climate change. (prospect.org/day-one-agenda…) Wonky but consequential example: if you write off benefits that occur decades in the future, climate regulations will rarely pass a cost-benefit analysis. The decisions made by OIRA, as the discount rate cop and peer reviewer, matter hugely and often red-light strong actions.
Nonetheless, post-Trump administrations probably won’t get rid of OIRA, as it’s a useful tool for making sure agencies are following the president’s agenda.
Thus, we suggest repurposing the office to do what our economic competitors do: industrial planning.
We go deeper in our 50+ page report for @rooseveltinst and the Great Democracy Initiative. The recommendations are based on a mass of social science literature that suggests something like this is the way to leapfrog the ample”veto points” in US life. (greatdemocracyinitiative.org/document/oira-…) I go into this problem in even more detail in a 2019 report for @rooseveltinst. The tl;dr: the US history of racism, legalism, and (more recently) neoliberalism has frustrated past attempts to enact industrial planning. A different approach is needed. (rooseveltinstitute.org/industrial-pol…) (Here’s @kendrabozarth from 2019 recounting how racism has hindered the development of state capacity for structural transformation. (rooseveltinstitute.org/why-this-matte…))
Back to the @theprospect forum. Next up, @kalhartp makes the case for OIRA abolition. As she notes, there are a lot of problems with the agency, and many important statutes don’t even require and often forbid cost-benefit analysis. For good reason. (prospect.org/day-one-agenda…)
As we note in our piece, we’re sympathetic to this argument. At the same time, as we note in the report, CBA has become so entrenched in agencies, courts, and even international treaties that it’s probably not going anywhere. Path dependence is (sadly) real.
Next up, @sharblock explains why OIRA’s role may be even more essential in coordinating the inter-connected public health response and economic relief efforts that will be needed in the next administration. One hand needs to know what the other is doing. (prospect.org/day-one-agenda…) She adds that we’re going to need a kind of Regulatory Truth and Reconciliation Commission after the damage of the Trump years. You can read daily from @eilperin @washingtonpost about these tragedies. (washingtonpost.com/climate-enviro…)
Last but not least, @tphillips likes some aspects of our proposal but not others. On the pro side, tripling the size of OIRA’s staff is a way to bring majority new blood into the agency. On the con, is CBA redeemable? He thinks not. (prospect.org/day-one-agenda…)
Thanks again to @theprospect and @ddayen for bringing us all together to have a virtual family chat on Team Progressive. We look forward to the day when we can have these chats in person. And if OIRA is the topic, strong beverages might be needed! END (prospect.org/day-one-agenda…)
(Adapted from this thread.)
