How to make big government agile again

We may hit the next financial crisis before the regulatory response to the last one is fully implemented. Why?

Can the government revert back to its more agile ways?
(Image credit: Four sided triangle / Alamy Stock Photo)

President Obama has passed many huge expansions of federal government authority, like ObamaCare and the Dodd-Frank financial reform bill, but getting such laws actually implemented was a tremendous struggle. The Volcker Rule, which prohibits certain forms of speculation by commercial banks, took nearly four years to be finalized, and hasn't taken full effect yet — and banks just asked for another five-year grace period before they have to comply. Elsewhere, the Commodity Futures Trading Commission recently delayed regulation of cross-border derivative contracts for an entire year.

We may well hit the next financial crisis before the regulatory response to the last one is fully implemented. Why? Legal scholars finger a culprit called "regulatory ossification," referring to the grinding slowness of today's federal rule-writing apparatus — largely because regulatory agencies are strangled by endless paperwork and frivolous lawsuits.

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Ryan Cooper

Ryan Cooper is a national correspondent at TheWeek.com. His work has appeared in the Washington Monthly, The New Republic, and the Washington Post.