Overreacting
Mar 24th, 2008 at 11:46 am by Susie
You really have to love these guys. People dropping dead from bad food and products, people losing their homes all over the country and their big worry is…
Regulation.
The idea that less regulation is better for the economy has held sway in Washington since the Reagan administration. Now that consensus is crumbling, posing a potentially costly challenge to business no matter who wins the White House in November.
The crisis in the nation’s housing market, the recent turmoil on Wall Street and a series of safety scares involving food, drugs and toys are driving both political parties to reconsider how much companies and markets should be relied upon to police themselves.
Even under the pro-business Bush administration, it appears the question isn’t whether the government will enact tougher rules for various parts of the economy, but just how much stricter those rules will be. The new climate has some business groups girding for battle against what they fear could be onerous new requirements.
“We’re in for a potentially significant regulatory response,” said Glenn Hubbard, dean of Columbia University’s business school and a former chief economist for the Bush White House, referring to the credit crunch and its impact on financial markets. “The hope is we won’t overreact.”
