How do federal regulations affect consumer prices? An analysis of the regressive effects of regulation

This study is the first to measure the impact of federal regulations on consumer prices. By combining consumer expenditure and pricing data from the Bureau of Labor Statistics, industry supply-chain data from the Bureau of Economic Analysis, and industry-specific regulation information from the Mercatus Center’s RegData database, we determine that regulations promote higher consumer prices, and that these price increases have a disproportionately negative effect on low-income households. Specifically, we find that the poorest households spend larger proportions of their incomes on heavily regulated goods and services prone to sharp price increases. While the literature explores other specific costs of regulation, noting that higher consumer prices are a probable consequence of heavy regulation, this study is the first to provide a thorough empirical analysis of that relationship across industries. Irrespective of the reasons for imposing new regulations, these results demonstrate that in the aggregate, the negative consequences are significant, especially for the most vulnerable households.

     

Fat Cats,Production Networks,and the Right to Fair Pay

Should there be a legal right to fair pay so that anyone might challenge the relative fairness of their pay? International human rights law does not clearly support such a right, partly due to the uncertain meaning of fairness in pay. The article challenges this uncertainty, explaining the marginal relevance of theories of distributive justice. Standards of fairness should be discovered instead in principles of interpersonal justice, particularly the bilateral principle of good faith, and in associational principles of desert by reference to contribution and recognition of persons. These contain an egalitarian impulse providing moral reasons for rejecting market rates of pay and, it is argued, should apply beyond single corporate entities, to corporate groups and networks of companies sharing an integrated production scheme. Finally, appropriate regulations enacting a legal right to fair pay are explored with a view to achieving reflexive yet effective regulation using works councils to fix outer limits to wage dispersal ratios.     

Politics and the attack on FDR's economists: from the grand alliance to the Cold War

US government economists in the later years of the administration of Franklin Roosevelt were urged to treat the Soviet Union as an ally, in the interests of winning World War II and establishing the basis for peaceful cooperation after the war. The onset of the Cold War and the subsequent rise of McCarthyism sullied the reputations of many of them, especially the two most prominent: Lauchlin Currie (chief economist in the White House) and Harry Dexter White (chief economist in the Treasury). Close examination of the parallels between these two seemingly disparate cases reveals that recent attempts to revive the charges are no more firmly based than those of the early 1950s.