Boehner Proposes Moratorium on all New Federal Regulations

Republicans need to win 40 House seats in November to wrestle control of the lower chamber from Democrats in November, and the man who could take the Speaker’s gavel from Rep. Nancy Pelosi (D-CA) says that his party would issue a one-year moratorium on all new federal regulations were it to take power in the fall.

"I think having a moratorium on new federal regulations is a great idea. It sends a wonderful signal to the private sector they may have some breathing room," John Boehner said on Friday after meeting with business lobbyists.

Failing to pivot from the failed philosophy of the Bush years, the Republicans Party is espousing the same views and promoting the same policies that brought the nation’s economy to its knees just two years ago.

Not only did nearly across-the-board deregulation result in the worst economic crisis since the Great Depression, but it has also been the raison d'etre for the nation’s failed trade policies for decades. The reasoning goes, less regulation and lower trade barriers allows a nation to specialize in industries where it holds a comparative advantage and sell those goods abroad.

While that may sound like a solid academic theory, in practice it simply does not work. True free trade does not exist. America consistently lowers its trade barriers, but the moves are usually not reciprocated by the nation’s trading partners.

China is the best example. Despite a decade of lower trade barriers and providing Chinese manufacturers with duty-free access to the largest consumer market in the world, Chinese trade barriers have remained relatively high. Beyond using tariffs and other measures to protect essential domestic industries, Chinese goods are made much cheaper relative to U.S. products by purposely undervaluing its currency, dumping products in foreign markets and subsidizing manufacturers.

Republicans, and their donors in big business, are clamoring for that outcome. In fact, a Republican takeover of the House could virtually ensure that the stalled Bush era free trade agreements with Columbia, South Korea and Panama are finally passed. As things now stand, the votes are probably there in the House for those agreements, however, their introduction into Congress would create a bitter intra-party battle that Democrats can barely afford.

John Del Cecato, a partner at AKPD Message and Media, writing in The Hill says that a Boehner-led House will be even more China-friendly than the current Congress. He points out that Boehner once broke from even the majority of his Republican colleagues to try and block legislation that would have punished individual, business or other nations for selling arms to China. Boehner also led the charge against the “Buy American” clause in the stimulus bill and another piece of legislation that would end tax breaks for companies that ship jobs overseas.

“Instead of standing up for American workers, their families and small businesses who have been burned by Wall Street, Big Banks and Big Oil – Boehner wants to give ‘breathing room’ to the special interests,” Pelosi said in a blog post. “The Bush-Republican decision to take the referee off the field is what led to the most serious fiscal crisis since the Great Depression.”