Sunstein, a Harvard law professor, has served in several administrations, both Republican and Democratic. In this book, he exposits his experience in regulation to suggest more effective ways to do so. Instead of partisan pro-con analysis, he suggests to measure costs and benefits, an idea originally implemented by Reagan through the Office of Information and Regulatory Affairs (OIRA). This practice provides a pragmatic – Sunstein calls it “technocratic” – way of assessing which regulations are helpful and which aren’t.
Sunstein points out that regulation, in and of itself, is not always a good thing and that deregulation, in and of itself, is not always a good thing either. Rather, we have to estimate and measure the monetary costs and benefits. He points out that the government, as a rule of thumb, measures the statistical value of a human life as $9 million. Although this seems controversial, this is merely an expedient way to factor value. It provides a way to quantify human sentiments and to judge their worth.
The Obama administration seemed to be helped by such pragmatism. Sunstein notes that many were stultified by the administration’s changing stances of being labeled “pro-environmentalist” one day and “pro-business” the next. He explains that the cost-benefit analysis merely rendered different verdicts. Such reasoning, which has evolved since its inception under Reagan, surely has brought about positive change in the well-being of the U.S. citizen. At least, Sunstein notes positive effects and its place in American legal theory under the “general welfare” clause of the Constitution.
As with most works of economics, this book engages reason applied in the long term as the best way to economic prosperity and happiness. He admonishes the Trump administration for abandoning such ideals in favor of populist deregulation. He notes that this is a change in Republican policy and that this disagrees with the policies of Reagan, H.W. Bush, and W. Bush.
I like Sunstein’s voice. His legal and ethical reasoning are quite strong. He heavily relies upon utilitarianism, but not entirely. His decades of experience in the federal government elucidate wisdom applied to present-day problems. This book hopefully will contribute to America’s and the world’s economic success in coming generations.
The Cost-Benefit Revolution
By Cass R. Sunstein
Copyright (c) 2018
The MIT Press
ISBN13 9780262038140
Page Count: 266
Genre: Economics
www.amazon.com