Consumers pay the costs of regulation


At the first of a lot of years, a wide variety of regulations are passed into law. Some, however, like the Clean Air Act, were signed into law but there was a five-year set point after the law was signed because there were a lot of areas that needed to have enough time to research what needed to be done and how to do it, such as when the oil companies had to stop using liquid lead compound in gasoline. The car industry also had a challenge to improve cars with better mileage.

What the politicians do not consider is the cost to companies to meet the regulations. In general, all companies had to improve their records on releasing toxic vapors to the open air. To accomplish these steps, it would cost all companies a lot of extra money to meet the regulation. Ten years after the law was in place, Congress wanted to know why the cost of gasoline had increased. The oil companies tried to point out that there were a lot of costs connected to accomplishing the task.

There were other comments made concerning the law. At what point does a regulation go too far. As we all know, companies pass on the cost to meet the regulation to the public. The politicians defend that by saying that it will only add a few pennies to the cost of products in the long run if the food industry had restrictions put in place. Then, over time, the cost of living would increase.

Dave Bensmiller