America Is Tangled In Red Tape, Ctd

In response to The Economist's pronouncement that America is over-regulated, Suzy Khimm highlights the "complexity conundrum": 

[G]reater simplicity can also give regulators more discretion and power. The Consumer Financial Protection Bureau, for example, was created with the aim of consolidating consumer protection responsibilities that had been scattered between many different agencies into a single office. The Economist, though, counters that this move toward consolidation still adds to complexity by giving federal officials "the power to regulate more intrusively and to make arbitrary or capricious rulings." And that’s the real bind that Dodd-Frank faces as regulators try to turn the law’s blueprint into a reality: complex regulations might be better at minimizing unintended consequences, but they also tend to be more burdensome to comply with; simple regulations are clearer but tend to give regulators a heavier hand.

Khimm analyzes the Treasury Department's response to The Economist in a follow-up post.