Home > Government & Politics > More Government Regulators

More Government Regulators

President Obama has rolled out his proposed 2012 budget earlier this week.  Of course, Congress has yet to pass the 2011 budget, but that is a separate matter.  As expected, there is a tremendous amount of scrutiny regarding this budget.  People are looking for the specifics of how the President and Congress are going to tackle federal spending, the deficit and total debt.

There is one consistent message you can glean from the proposed budget, President Obama wants to increase the number of government regulators, especially for the Departments dealing with money and finances.  The following is a snapshot of the number of the proposed new government hires:

Some of the funding will come from a direct allocation of taxpayer dollars (or additional federal borrowing), and the remaining portion will come from user fees charged by the various agencies.  For instance, the total 2012 cost to implement the financial regulations from the Dodd-Frank Act will be $6.5 billion. Of that amount, $4.8 billion is part of the federal budget’s discretionary spending, and the remaining $1.7 billion will come from user fees assessed to financial institutions.

Bloomberg has estimated that the new $6.5 billion of spending to implement Dodd-Frank is the equivalent of creating a new agency equal in size to the Army Corps of Engineers.  I can’t want to see how many people will need to be added to implement, operate and regulate the provisions of the health care bill.

There is no guarantee that all of these positions will be filled.  The budget has to make it through Congress, which will likely make some alterations, and cuts.  These new positions may serve a valuable purpose, but there is a cost to adding nearly 10,000 new employees to the government payroll.  Congress will have to decide if the cost is worth it.

The President’s 2012 budget shows just how hard it’s going to be to trim federal spending.  Even while talking about deficit reduction and getting government debt under control, the Administration wants to create thousands of new government positions.  They may believe in less government spending, but their budget certainly indicates they believe in more enforcement of government regulations.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: