In: Economics
what is presidential rule-making? Explain.
The federal agencies increasingly use rulemaking rather than adjudication to set regulatory policy; procedural differences between the two forms of agency action raise problems addressed by regulatory reform efforts. The Administrative Procedure Act (APA) imposes distinct requirements for adjudication and rulemaking. Adjudication must be conducted through a .full trial-type hearing with a decision confined to the record. "Informal" rulemaking, in contrast, is usually subject only to simple requirements that the agency publish notice of a proposed rule, afford the public an opportunity to comment on it, and include a concise statement of basis and purpose with the final rule. Agencies now tend to rely on rulemaking to set policy partly because Congress has created many new regulatory programs that are.better implemented by general directives than by case-by-case determinations. In addition, the agencies hope to avoid the delays and burdens of adjudication.' But precisely because rulemaking provides a policymaking method that bypasses the procedural restrictions imposed on adjudication, there is cause for concern over the adequacy of public participation in and external review of rulemaking. Rule making, unlike adjudication, is not immune to outside intervention" and instead is open to the influence of persons outside the agency possibly including the President. This discussion will focus on the acute regulatory issues raised in rulemaking, and on the presidential role suggested by the inadequate responses of the other branches to those issues.