The cover story of this week’s Fortune magazine—“The Red Tape Conundrum” by Brian O'Keefe—highlights the work of Philip Howard and Common Good. The article’s sub-heading reflects the substantive connection to Common Good: How the wrong kind of regulation is strangling business—and what to do about it.
“It may well be the biggest bogeyman in business—bigger, perhaps, than even taxes: We’re talking, of course, about red tape,” the article begins. “The idea that burdensome and overly complicated government regulation is strangling growth is almost as old as commerce itself. But right now the hue and cry from the business community is louder than at just about any time in recent memory… In a recent survey by Deloitte, North American chief financial officers named new, burdensome regulation as the No. 2 threat to their business, behind only the possibility of a recession.”
The article then explores key questions: How can we be sure that our regulatory framework promotes innovation and fosters growth while at the same time protecting workers and consumers? Can we fix the current system or do we need to start over? How much is business at fault for the very excesses that companies themselves bemoan? And, finally, is there anything anybody can do to stop it?
“The rulemaking machinery—just like the law-making system—is geared toward pushing out new regulations, not removing them,” continues the article. “‘I kind of think of the regulatory issue as people basically saying in their own varying ways, Who’s in charge here?’ says (Michael) Mandel (chief economic strategist at the Progressive Policy Institute).”
“Philip K. Howard has spent more than two decades waging a campaign against red tape,” the article continues. “… he has written four books assailing over-legalization and founded a nonprofit, nonpartisan organization called Common Good to advocate reform—enlisting in his projects retired politicians from both the left and the right, including former senators Bill Bradley and Alan Simpson and former Indiana Gov. Mitch Daniels… Howard’s belief is that our laws have gotten too precise for such a complex world and that our attempts to dictate every aspect of human behavior through rulemaking are only bogging us down. The system, he argues, is unadaptable. Similar to Mandel, Howard believes that too many different authorities means that nobody is in charge… In Howard’s mind, it’s time to go to a clean sheet of paper and rethink our entire approach… ‘You can’t reform this system,’ says Howard. ‘You have to rewrite it. That’s the lesson of history.’”
“(Matt) Harris (managing director at Bain Capital Ventures) echoes Philip K. Howard in suggesting that we may need a more radical approach. The best way to respond to our increasingly complex world is to make our rules simpler, he suggests, not more detailed. Regulations are now written in an attempt to legislate every imaginable action by individuals on every imaginable subject—an impossible task. ‘I think the whole thing needs to be rethought and boiled back to more of a principles-based set of detailed prescriptions on how everything can work,’ says Harris.”
From beginning to end, the cover story reverberates with Common Good’s philosophy about and solutions to this critical issue and underscores the necessity of our new campaign, joined by Sen. Bradley and Gov. Daniels among others, to overhaul government.
Click here to read the full Fortune piece.