Regulation

Excessive government regulation stymies individual and business innovation necessary for strong economic expansion. The Club for Growth supports less and more sensible government regulation as a critical step toward increasing freedom and growth in the marketplace.

Mitt Romney's record on regulation is generally impressive. On the campaign trail, he has supported drilling in ANWR44 and opposed the burdensome regulations imposed by Sarbanes-Oxley45. As governor, he often clashed with the knee-jerk anti-business Legislature over his attempts to ease Massachusetts' regulatory burdens. Though some of his largest undertakings were ultimately crushed by liberal opposition, Governor Romney deserves praise for attempting to change the relationship between government and private enterprise for the better. These efforts include:

• Vetoed an increase in the minimum wage from $6.75 to $8.00, proposing a 25-cent increase as a compromise, and arguing that "there's no question raising the minimum wage excessively causes a loss of jobs"46
• Pushed to revamp the Pacheco Law, a union-backed measure that makes it nearly impossible to privatize or outsource state services47
• Aggressively pushed to deregulate Massachusetts' "Soviet-style" auto insurance industry. Massachusetts is the only state in which the government mandates maximum insurance rates and requires insurers to accept every applicant48
• Called for the privatization of the University of Massachusetts medical school 49
• Proposed measures to eliminate civil service protection for all municipal workers except police and firefighters and exempt low-cost public construction jobs from the state's wage law 50
• Proposed easing decades-old state regulations on wetlands 51
• Proposed easing pricing regulations on Massachusetts retailers 52
• Signed a bill streamlining the state's cumbersome permitting process for new businesses 53
• Eased regulations for brownfield development 54
• Vetoed a bill limiting the ability of out-of-state wineries to ship directly to Massachusetts consumers, calling the legislation "anti-consumer" 55

Governor Romney's regulatory record contains some flaws. Despite vetoing the Legislature's minimum wage increase, the Governor is on record supporting indexing the minimum wage to inflation.56 Romney also signed into law a measure banning smoking in the workplace including bars and restaurants (with exemptions for some private clubs)57; and implemented "comprehensive ocean zoning reform" that imposed new regulations on ocean front development.58

On balance, Romney's anti-regulation efforts reflect an intuitive appreciation for the free market and its important role in promoting economic growth. While many of his proposals were rejected by the State Legislature, he demonstrated strong support for private enterprise in a state where regulation is a way of life.

44 Boston Globe, 12/13/05

45 Mitt Romney, Club for Growth Winter Conference, 03/29/07

46 Telegram & Gazette, 08/01/06

47 Boston Globe, 02/26/03

48 The Sun, 06/02/05

49 Telegram & Gazette, 02/27/03

50 Boston Herald, 01/31/03

51 Telegram & Gazette, 09/05/04

52 Knight Ridder Tribune Business News, 02/27/03

53 The Berkshire Eagle, 08/04/06

54 Boston Globe, 09/12/03

55 Press Release, Mitt Romney, 11/21/05 & Telegram & Gazette, 11/22/05

56 The Patriot Ledger, 11/02/02

57 Press Release, Mitt Romney, 06/18/04 & The Patriot Ledger, 06/11/04

58 US Fed News Service, 03/18/05

REGULATORY RELIEF: Governor Romney Would Reinstitute A Regulatory Relief Board To Cut Back Regulations That Choke Off Growth. "Our regulatory burden is also overbearing. I'd re-institute a regulatory relief board to cut back the regulation weeds that choke off growth. One that deserves pruning is Sarbanes Oxley - it's driving away IPO's, depressing jobs, and requiring billions of unnecessary cost. Executives who violate the law should go to jail, but the entire economy shouldn't have pay an inordinate price for the sins of the few bad actors."

• Governor Mitt Romney

"Which course is better for America? A European model of high taxes and regulations? Or, low taxes and free trade - the Ronald Reagan model? That's the choice the next President will make. Some are already fighting to implement a massive tax increase. Instead, we should make the tax cuts permanent."

• Governor Mitt Romney