The Economic Constitution of the United States

Spring 2024, Paper: "Suppose that the US Department of Transportation wants to issue a new regu uppose that the US Department of Transportation wants to issue a new regu lation, one that would require all new motor vehicles in the United States to be equipped with some state-of-the-art safety technology. Will the regulation go forward? The answer might well lie in the hands of the Office of Information and Regulatory Affairs (OIRA), a small office in the Office of Management and Budget. Headed by an administrator who is nominated by the president and confirmed by the Senate, OIRA consists of policy analysts, economists, and lawyers, who will ask whether the benefits of the new regulation would justify the costs. That question is asked not only for motor vehicle safety regulations; it is also asked for climate change regulations, occupational safety regulations, water pollution regulations, immigration regulations, animal welfare regulations, airline safety regulations, and many others as well. But how do agencies assess costs and benefits? Where will they look?"