Contributor Post Created with Sketch. The Tyranny of the Regulations Equation

 

ORocketAnyone who has ever built a rocket — or played at it on a computer — has encountered “The Tyranny of the Rocket Equation.” First identified in the 19th century, one of its consequences is that, at a given point, the costs of carrying more fuel outpace the benefits. Pushed past that point, the rocket either becomes inefficient in its early stages (and consequentially doesn’t take-off) or simply becomes so large that it collapses under its own weight. If a more down-to-earth illustration of the same principle suits you, consider the problems of hiking while carrying all your own food: eventually, the added benefit an extra granola bar provides is outweighed (literally) by the energy it would take to haul it up a mountain … that, or it simply rips your backpack open.*

As a piece in today’s WSJ illustrates, the same conundrum applies to regulations meant to give us a better welfare state:

U.S. regulators are pushing stricter rules for stores that accept food stamps, ultimately determining which retailers win and lose the billions of taxpayer dollars at stake. The proposal is throwing gas stations and corner stores into a battle with giants like Wal-Mart Stores Inc. and Kroger Co. over the $74 billion Supplemental Nutrition Assistance Program, or SNAP.

By year end, the U.S. Department of Agriculture wants to adopt rules that require stores redeeming food stamps to stock a wider variety of meats and vegetables and sell fewer hot meals, like pizza. At a time when sales growth is hard to come by, redeeming food stamps is critical for grocers. Last year, SNAP funds comprised an average of 5.8% of sales at participating stores, according to a poll of 6,500 stores by the Food Marketing Institute, a trade group.

It makes a great deal of sense, doesn’t it? If we are paying for people’s sustenance, then it follows that we have an obligation to see that they have a nutritious diet. It’s even more true when the consequences of bad nutrition are remedied through publicly-financed healthcare. And, lest I be beating-up on the poor, the same applies to middle class entitlements as well: Hey, if I’m on the hook for your Medicare — a program that will go bankrupt decades before I retire — then maybe Mike Bloomberg has a point regarding sugary drinks and trans fats.**

Multiply this across a thousand bureaucracies, each striving — under ideal conditions and with the best of civil servants — to promote the public interest within its sphere of responsibility. Before long, you arrive at our current situation, where we’re suffering under a tremendous weight of regulation, much of which serves no other purpose but to ensure the proper implementation of other regulations.

It’s called tyranny for a reason. There is an alternative.

* In both cases, the problem is solved by refueling along the way. Sadly, there are no diners or gas stations in space. Yet.

** Alternatively, maybe it’s in my interest to let you eat and drink yourself into an early grave. This stuff is awful, isn’t it?

There are 28 comments.

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  1. BrentB67 Inactive

    I don’t know if it is intentional or not in your piece, but you reveal the true nature of this program(s).

    SNAP is described as nutrition assistance for the poor. When in reality itis earnings assistance to low margin food retailers. SNAP equips people not generally inclined to comparison and nutrition shopping with disposable income that is often spent on high margin, processed food, of dubious nutritional value.

    One of the scandals during the great SNAP reform debacle (in 2013 I believe) was Wal Mart threatening to re-state their earnings and revise future estimates down on the basis that SNAP funding would grow at a slower pace. Unfortunately that part of the story passed without media recognition.

    • #1
    • June 28, 2016, at 9:16 AM PDT
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  2. BrentB67 Inactive

    Good article by the way.

    • #2
    • June 28, 2016, at 9:16 AM PDT
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  3. James Lileks Contributor

    Our family gas station / C-store already has coolers and a steam table, so we could probably meet the new standards without installing new equipment. But it would mean removing other items, ergo, we can’t sell what we know people want to buy, we have to sell what the regulations say the people should want.

    And what should they want? From the article:

    To reach the new minimums, regulators suggest stocking tofu and goats milk, which stores say people don’t want to and can’t afford to buy.

    Goats milk. Fargin’ GOATS MILK.

    • #3
    • June 28, 2016, at 9:24 AM PDT
    • 1 like
  4. BrentB67 Inactive

    James Lileks:Our family gas station / C-store already has coolers and a steam table, so we could probably meet the new standards without installing new equipment. But it would mean removing other items, ergo, we can’t sell what we know people want to buy, we have to sell what the regulations say the people should want.

    And what should they want? From the article:

    To reach the new minimums, regulators suggest stocking tofu and goats milk, which stores say people don’t want to and can’t afford to buy.

    Goats milk. Fargin’ GOATS MILK.

    I wasn’t aware the Goat’s milk and Tofu lobbies had such sway with the USDA.

    • #4
    • June 28, 2016, at 9:25 AM PDT
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  5. Ralphie Member

    One thing always leads to another. I would vote for giving the money without strings attached, and when the money runs out for the month, too bad. I like the idea of eliminating welfare and just sending out money. If the idea of welfare workers is to eliminate welfare clients, it’s not working. I myself think we will always have poor, and that charity is best done privately.

    • #5
    • June 28, 2016, at 9:52 AM PDT
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  6. TreeRat Member

    My favorite example of regulation inefficiency — although I would not bet huge sums on its veracity — is of a hospital (I think I lived in the KC area at the time) that had to put plastic liners in all trash receptacles ahead of Health Inspections and had to remove them ahead of Fire Inspections.

    • #6
    • June 28, 2016, at 9:53 AM PDT
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  7. OkieSailor Member
    OkieSailor Joined in the first year of Ricochet Ricochet Charter Member

    My teenagers all wanted to make their own decisions. And they wanted Dad to pay the bills. But Dad wasn’t willing to give up control UNTIL they attained financial independence. Yeah, it’s a process, but you get the idea. So why does any Adult think there is welfare without stings? Not only is that not possible, it would be dereliction on the part of the ‘Dads’. There is no free lunch it always comes with strings attached.

    • #7
    • June 28, 2016, at 10:19 AM PDT
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  8. The (apathetic) King Prawn Inactive

    James Lileks:Our family gas station / C-store already has coolers and a steam table, so we could probably meet the new standards without installing new equipment. But it would mean removing other items, ergo, we can’t sell what we know people want to buy, we have to sell what the regulations say the people should want.

    And what should they want? From the article:

    To reach the new minimums, regulators suggest stocking tofu and goats milk, which stores say people don’t want to and can’t afford to buy.

    Goats milk. Fargin’ GOATS MILK.

    Government wants you to suffer and grovel in gratitude for the experience.

    • #8
    • June 28, 2016, at 10:27 AM PDT
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  9. I Walton Member

    Good article. This is just one of the reasons the welfare state is far more harmful to its supposed beneficiaries than it is helpful. It has few, if any, redeeming social benefits, but it’s purpose was control, so who said it was supposed to help people. If nutrition were the objective it would be simple, provide free “inferior goods” like beans in every super market. Nobody goes hungry nobody binges. There would be export leakage in border towns. Big deal bean growers would be happy. Or just stop the nonsense entirely.

    • #9
    • June 28, 2016, at 10:43 AM PDT
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  10. Fricosis Guy Listener

    BrentB67:

    James Lileks:Our family gas station / C-store already has coolers and a steam table, so we could probably meet the new standards without installing new equipment. But it would mean removing other items, ergo, we can’t sell what we know people want to buy, we have to sell what the regulations say the people should want.

    And what should they want? From the article:

    To reach the new minimums, regulators suggest stocking tofu and goats milk, which stores say people don’t want to and can’t afford to buy.

    Goats milk. Fargin’ GOATS MILK.

    I wasn’t aware the Goat’s milk and Tofu lobbies had such sway with the USDA.

    Not sure if WhiteWave sells goat milk, but it’s the vanguard of the healthy eating conglomerates.

    • #10
    • June 28, 2016, at 11:04 AM PDT
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  11. The Flying Fezman Member

    Richard Finlay:My favorite example of regulation inefficiency — although I would not bet huge sums on its veracity — is of a hospital (I think I lived in the KC area at the time) that had to put plastic liners in all trash receptacles ahead of Health Inspections and had to remove them ahead of Fire Inspections.

    A friend of mine owned a daycare and had to do something similar regarding a gate leading out of the play yard. The Fire Inspector required the gate to be easily operable by escaping children in the event of a fire. The Safety Inspector required that the gate not be operable by children so they couldn’t run out into the street. She explained the situation to both, and neither would budge. So she came up with a workaround: She purchased a gate with a latch that looked like it couldn’t be operated by children, but she taught all the kids how to open it. Then depending on which inspector came, she would have a trusted kid either demonstrate that he couldn’t open it, or that he could.

    • #11
    • June 28, 2016, at 11:06 AM PDT
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  12. Pugshot Member
    Pugshot Joined in the first year of Ricochet Ricochet Charter Member

    Well, the answer to this is quite simple. The government has already shown that it can operate a chain of Veteran’s Hospitals all across the country to provide top-level medical care with amazing efficiency and at a reasonable cost. It should be no problem at all to establish a nationwide chain of restaurants where proles eligible citizens (with government-issued photo id) can show up 3 times a day to dine on the finest tofu products and wash them down with delicious goats’ milk. And think of the construction jobs that will be created to design and build these restaurants! And the jobs that will be created to staff them (although to keep down costs, they should be cafeteria style without waiters and waitresses waitpersons)! And think of the jobs created for goat herders and tofu farmers! And the jobs created for inspectors to inspect the restaurants – and additional regulators to draft new regulations for the operation of the restaurants! And if food supply costs nevertheless escalate too rapidly, then Soylent Green to hold down costs! Onward to Utopia!

    • #12
    • June 28, 2016, at 11:08 AM PDT
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  13. Tom Meyer, Common Citizen Contributor

    The Flying Fezman:

    A friend of mine owned a daycare and had to do something similar regarding a gate leading out of the play yard. The Fire Inspector required the gate to be easily operable by escaping children in the event of a fire. The Safety Inspector required that the gate not be operable by children so they couldn’t run out into the street. She explained the situation to both, and neither would budge. So she came up with a workaround: She purchased a gate with a latch that looked like it couldn’t be operated by children, but she taught all the kids how to open it. Then depending on which inspector came, she would have a trusted kid either demonstrate that he couldn’t open it, or that he could.

    1. Aww.
    2. Ugh.
    • #13
    • June 28, 2016, at 11:11 AM PDT
    • 1 like
  14. Gumby Mark (R-Meth Lab of Demo… Thatcher

    This is why Progressives structured healthcare reform in a top-down government controlled way, rather than seeking to eliminate the government actions that have distorted the market (tax subsidies, certificates of need etc) that would have let a solution develop in a more spontaneous way.

    Once the government controls the flow of dollars, as it now does substantially in healthcare via Medicare, Medicaid and Obamacare, it uses that as a justification for interfering with people’s day to day decisions on the basis that it impacts how the government is spending its money. Market based solutions fail to provide that justification.

    • #14
    • June 28, 2016, at 11:20 AM PDT
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  15. Duane Oyen Member
    Duane Oyen Joined in the first year of Ricochet Ricochet Charter Member

    Ralphie:One thing always leads to another. I would vote for giving the money without strings attached, and when the money runs out for the month, too bad. I like the idea of eliminating welfare and just sending out money. If the idea of welfare workers is to eliminate welfare clients, it’s not working. ….. we will always have poor………

    I think I prefer WFB’s proposal from around 1970 or so. He was on a panel that was tasked to make recommendations regarding the future of food stamps (this was back when there were, you know, stamps) and the “Guaranteed Annual Income” to prevent what was then known via that particular generation of leftists as the problem of “Hunger In America”. The best reply to the latter statement came from Richard J. Daley (The First), the notorious mayor of Chicago, who advised that if anyone in Chicago was truly hungry, they should just call his office. and they would get him a sandwich.

    The panel hit upon the solution for the moral hazard, by recommending that four things be given away “free” in certain stores, and people could just come, sign a paper, and haul the stuff away. The four items were determined to provide all the nutritional needs of a survival diet: brown rice, bulgar wheat, powdered milk, and dried beans ( along with a booklet of recipes). This diet solved all the hunger problems, and at the same was not an invitation to scam the system.

    • #15
    • June 28, 2016, at 12:39 PM PDT
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  16. CuriousKevmo Member

    Mark: Once the government controls the flow of dollars, as it now does substantially in healthcare via Medicare, Medicaid and Obamacare, it uses that as a justification for interfering with people’s day to day decisions on the basis that it impacts how the government is spending its money

    I fully expect that in my lifetimes we will see limitations on my food choices – no burgers or fried foods. Limitations on hobbies, why you could sever a finger on that band saw. Motorcycle? no way man….too many expensive injuries to cover and on and on….

    • #16
    • June 28, 2016, at 12:51 PM PDT
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  17. Israel P. Inactive

    James Lileks:And what should they want? From the article:

    To reach the new minimums, regulators suggest stocking tofu and goats milk, which stores say people don’t want to and can’t afford to buy.

    Goats milk. Fargin’ GOATS MILK.

    So this stuff will go bad cause no one buys it and it’s the government that made them stock it. So the government has to pay them for the out of date stuff. And take it away. New army of Dept of Ag employees to do and supervise and pay.

    • #17
    • June 28, 2016, at 1:03 PM PDT
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  18. Tom Meyer, Common Citizen Contributor

    James Lileks:

    Goats milk. Fargin’ GOATS MILK.

    But is the goat’s milk organic?

    • #18
    • June 28, 2016, at 1:11 PM PDT
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  19. Tenacious D Inactive

    Tom Meyer, Ed.:

    James Lileks:

    Goats milk. Fargin’ GOATS MILK.

    But is the goat’s milk organic?

    More importantly, how has it escaped being made into cheese?

    • #19
    • June 28, 2016, at 1:28 PM PDT
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  20. Randy Weivoda Moderator
    Randy Weivoda Joined in the first year of Ricochet Ricochet Charter Member

    Why not just give live goats to poor people so they can milk them themselves? It at least would provide some humorous stories.

    • #20
    • June 28, 2016, at 2:20 PM PDT
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  21. Frozen Chosen Inactive

    Ralphie:One thing always leads to another. I would vote for giving the money without strings attached, and when the money runs out for the month, too bad. I like the idea of eliminating welfare and just sending out money. If the idea of welfare workers is to eliminate welfare clients, it’s not working. I myself think we will always have poor, and that charity is best done privately.

    That’s pretty much what is happening with SNAP funds now anyway. Fraud is rampant in the program and is accomplished when users go to crooked merchants who give them 50 cents cash for $1 worth of benefits. Neither state or federal government has any desire to stop it because the feds provide the funding and the states administer it. I found this out years ago when I was selling a software program that could detect the fraud. Nobody cared.

    • #21
    • June 28, 2016, at 2:39 PM PDT
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  22. Tuck Inactive

    Mere tyranny would be an improvement. What we’ve got is totalitarian government.

    • #22
    • June 28, 2016, at 5:28 PM PDT
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  23. Unsk Member

    All kidding aside, the implications of Tom’s fine post are that our great benevolent and so caring government will limit our choices with the excuse since they control the money, they absolutely must make the decisions, thereby reducing commerce, reducing jobs and in the end reducing our standard of living by some small measure by just this one action.

    Rinse and repeat a few hundred thousand times and Voila! we will become Venezuela!

    This tyranny of regulations has already laid significantly large portions of our economy to waste during the last eight years and it is a sad, sad thing our Presidential Candidates – the both of them -aren’t interested at all. In fact they don’t want to even hear about it.

    • #23
    • June 28, 2016, at 5:47 PM PDT
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  24. Gumby Mark (R-Meth Lab of Demo… Thatcher

    Unsk:All kidding aside, the implications of Tom’s fine post are that our great benevolent and so caring government will limit our choices with the excuse since they control the money, they absolutely must make the decisions,

    That’s why all those folks shouting about a government granted right to healthcare back in 2009 were so deluded. With government healthcare all you have is a right to the amount, type and quality of healthcare that the government deems appropriate for you and is willing to pay for.

    • #24
    • June 28, 2016, at 6:16 PM PDT
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  25. BrentB67 Inactive

    Unsk:All kidding aside, the implications of Tom’s fine post are that our great benevolent and so caring government will limit our choices with the excuse since they control the money, they absolutely must make the decisions, thereby reducing commerce, reducing jobs and in the end reducing our standard of living by some small measure by just this one action.

    Rinse and repeat a few hundred thousand times and Voila! we will become Venezuela!

    This tyranny of regulations has already laid significantly large portions of our economy to waste during the last eight years and it is a sad, sad thing our Presidential Candidates – the both of them -aren’t interested at all. In fact they don’t want to even hear about it.

    I think you are missing the point about government limiting choices.

    The problem isn’t gov’t limiting welfare recipient’s choices. The problem is a central government powerful enough to confiscate our property/earnings to distribute to others in the form of SNAP and other welfare.

    • #25
    • June 28, 2016, at 6:19 PM PDT
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  26. barbara lydick Inactive

    Oy veh. Add to this madness the possibility of Elizabeth Warren in our future – helping St Hill, that is…

    • #26
    • June 28, 2016, at 6:34 PM PDT
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  27. Larry3435 Member

    Here’s an idea: Take all the “nutritious” food that Michelle Obama is forcing schools to serve, and which the kids just throw away, and let the stores “stock” that. You could just rotate the trash cans from the schools to the convenience stores. Since nobody is going to buy this stuff, you wouldn’t even have to take it out of the trash cans. Just keep it “in stock” until the next trash can shows up, and then throw it away.

    • #27
    • June 29, 2016, at 4:06 AM PDT
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  28. Tuck Inactive

    Larry3435: Here’s an idea: Take all the “nutritious” food that Michelle Obama is forcing schools to serve, and which the kids just throw away, and let the stores “stock” that.

    Yeah, that’s exactly the idea, actually.

    • #28
    • June 29, 2016, at 9:22 PM PDT
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