Esper CEO Maleka Momand discusses the economic cost of regulatory accumulation with Joe Lonsdale.
Insight
Momand: Agencies only revise rules for statutory changes or special interest outcry
“And the only reason they'll change the regulation is if the law changes their statutory authority or a really massive special interest, like throws a fit.”
Assertion Not checkable as stated
Momand: Legislative Shift to Regulatory State Occurred in the 1980s and 1990s
“The shift in power to the regulatory state really happened in like the later 1900, like eighties, nineties where the legislature kind of gave away some of their power to these agencies and the agencies are now creating and enforcing regulations.”
Insight
Momand: Regulatory reforms increase regulations by adding paperwork without process change
“The federal government has introduced a lot of regulatory reform during that time period, aimed at, like, keeping the number of regulations low, but because they haven't really changed process, they've just, like, added more paperwork and more people to it the…”
Opinion
Momand: Regulatory agencies do not know net trade-offs of stacked rules
“I don't know, and the agencies don't know. That's the issue. So right now regulatory agencies, they'll pass, you know, an occupational licensing regulation in 2000, and then they'll pass a new one in 2015, and a new one in 2020, and they begin to stack on top …”
Insight
Momand: Bureaucracies Expand Because They Lack Dynamic Feedback
“Whereas the government is not getting dynamic feedback and it just continues to grow because they don't have any reason not to.”
Opinion
Momand: Regulation, Not Small Business, Is the Backbone of the Economy
“People talk about the small business being the backbone of our economy. I actually think regulation is like the backbone of our economy, good or bad, sometimes even bad back.”