Unfair Advantages: How Licenses & Waivers Threaten The Rule of Law

When laws are clearly written and widely understood, people can easily determine that their actions are lawful. 

But recently, Congress has been threatening the rule of law by writing more complicated legislation, shifting the balance of power toward regulators at federal agencies who fill in gaps left by Congress. 

Which results in case-by-case determinations. 

So instead of referencing clearly written laws that tell you what you can do, regulated parties have to go to an agency and ask permission before acting. 

This has led to an increased use of licenses. 

which act as natural road block to economic development and holds up many productive behaviors. 

It’s also led to an increased use of waivers, which grant permission to do something different than what the rules require. 

For example, in the first couple years of the ACA, there were 1,231 waivers issued. 

Many waivers went to politically connected large corporations and labor unions. Others who asked for them were denied. 

Instead of engaging in economically productive behaviors like investments and hiring, businesses respond by putting money towards winning political favors 

Congress can revitalize the rule of law if it returns to passing clearly written laws that are widely understood.