Will State of the Union Mark Tonal Shift for Obama on Regulation?

What a difference a week makes.

Last Tuesday, Jan. 18, President Obama took to the pages of The Wall Street Journal to complain about federal regulation, adopting the conservative mantra that regulation is largely a nuisance and can impair job growth.

Last night, in his Jan. 25 State of the Union address, Obama took a decidedly different tone. He began by implying that regulations are nothing but a hindrance to businesses. But just as quickly as my blood began to boil, it came down to a simmer. Obama followed by recommitting himself to the importance of public protections, citing consumer, labor, and environmental regulations as critical governmental contributions to society. Here is the paragraph from Obama's speech pertaining to regulation:

To reduce barriers to growth and investment, I've ordered a review of government regulations. When we find rules that put an unnecessary burden on businesses, we will fix them. But I will not hesitate to create or enforce commonsense safeguards to protect the American people. That's what we've done in this country for more than a century. It's why our food is safe to eat, our water is safe to drink, and our air is safe to breathe. It's why we have speed limits and child labor laws. It's why last year, we put in place consumer protections against hidden fees and penalties by credit card companies, and new rules to prevent another financial crisis. And it's why we passed reform that finally prevents the health insurance industry from exploiting patients.

So where does Obama stand on the role of federal regulation? Only his administration's actions can answer that question. A recent series of reports issued by OMB Watch found that, "The Obama administration has taken its role of protecting the public seriously and has been far more active in pursuing its regulatory responsibilities." But Obama's Wall Street Journal editorial, as well as the news that his administration is backing away from plans to regulate smog and muscoskeletal disorders indicate that Obama may have grown gun shy in the face of Congressional and industry opposition to regulation.

Only time will tell.

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