ALSO IN THIS ISSUE

Tesla Shareholders, Not the Government, Should Hold the CEO Leash .............5Science Shows it’s Not Really Green to Ban Plastic Bags .....................7Latest Bipartisan Carbon Tax Folly ........8Walking off the Job at Taxpayer Expense. . .10Will New Congress Seek Reforms to Highway Funding? ....................11CEI Events Update ....................12The Good, the Bad, and the Ugly ........14Media Mentions ......................15End Notes ...........................16

COMPETITIVE ENTERPRISE INSTITUTE VOL. 32, NO. 1 | WINTER 2019

FEATURED ARTICLES

BY RYAN YOUNG

Lessons from the GM Layoffs: End the Tariffs and Subsidies

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Unfounded E-Cigarette Panic Puts Lives at Risk

BY MICHELLE MINTON.

E

-cigarettes pose a fraction of the risk of cig-arette smoking, just 1 percent to 5 percent according to authorities like the British govern-ment. That could mean the difference between life and death for the half million Americans and 7 million people worldwide who die of smoking-related illnesses every year.Even if it turns out that e-cigarettes convey small long-term risks, those products should remain an option for smokers who haven’t been able to kick their more deadly habit and haven’t had luck with prescription drugs, patches, gums, or lozenges.Why, then, do government agencies and certain health activists focus more on scaring people about the unknown risks of e-cigarettes than helping them understand the relative risks of vaping compared to smoking? The unfortunate truth is that many of these groups may be letting their need for headlines and fundraising interfere with their genuine goal of improving public health.To the general public, there seems to be a consensus on the dangers of e-cigarettes. Government agencies like the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) and activist groups like American Cancer Society and the Campaign for Tobacco-Free Kids have all reached the same conclusion: E-cigarette use is “epidemic” among teenagers and this is terrible for public health.But what most people don’t know is that these groups have worked together to hype unfounded fears, promote shared policy goals, boost each other’s clout, and pad their coffers.The facts on are not on the side of anti-vaping activists. There is no epidemic in teen vaping. The latest CDC survey data only reveal any e-cigarette use in the last month, but previous data showed that fewer than 6 percent of teens (including 18 year olds, who can legally purchase e-cigarettes) vaped habitually (20-30 days a month). That means over 94 percent of teens are not regularly vaping. Furthermore, CDC data do not tell us how many of these teenage vapers are using nicotine, but previous research found most of them were not. It also doesn’t say what percentage of teen e-cigarette users had never smoked, a number previous research puts at less than 1 percent.More importantly, the latest CDC data reveal nothing about underage smoking, which is the single most important data point in evaluating the harms or benefits of teenage vaping. Since the introduction of e-cigarettes to the U.S. market, adolescent use of cigarettes

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BY WAYNE CREWS AND RYAN YOUNG

How to Rein in Regulatory Dark Matter

(continued on page 3)

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BY JESSICA MELUGIN

Cities Should Stop Slowing Down America’s 5G Revolution

 

Help Us Celebrate 35 Years of CEI

by Kent Lassman

S

pring is coming—and a big anniversary with it. This year, we celebrate 35 years of CEI fight-ing for liberty. From its humble beginnings at Fred Smith’s kitchen table to our place of prominence as an authority on regulatory policy today, this organization remains steadfast in its commitment to restrain gov-ernment, and to the value of expanding the scope of human freedom. With that in mind, I hope you can join us on June 20, in Washington, D.C., as we celebrate these past 35 years—and look forward to the next three decades—at CEI’s annual dinner and reception. But first, the reason for celebrating. This winter, CEI hit the ground running. We started 2019 with the launch of the new edition of

Free to Prosper: A Pro-Growth Agenda for the 116th Congress

. It offers some bold, yet practi-cal ideas for regulatory reform the new Congress should consider and pursue. Crucially, in a divided Washington, it finds some bipartisan avenues where regulatory reform and restraint are possible. Such reform is crucial. Today, unaccountable regulatory agencies dominate how we live, work, play, build, travel, prepare food, and heal one another. Typically, regulations do not lead the news and are not an issue that will garner much attention. Yet, virtually every aspect of our lives is subject to regulations from Washington. Did you know it is a federal crime to sell chewing gum that is more that 0.065 percent beeswax or to sell vegetable spa-ghetti bigger than 0.11” in diameter? We have all seen the photos of the

Federal Register

that look like mountains of paper. How did we get there? Article I of the Constitution bestows the power to make laws to Congress—and Congress alone. Yet, for decades, Congress has delegated away much of its lawmaking authority to regulatory agencies. Congress must reassert its constitutional authority to better position itself to address issues proactively rather than standing on the sidelines while the executive and judicial branches of government take the initiative. This isn’t just a legal issue. Regulation tends to crowd out the institutions best positioned to address the nation’s myriad challenges. Regulatory reform, done right, can help make room for all the good that comes from the institutions that are the fabric of local communities, such as churches, booster clubs, museums, scholarship funds, and food drives. The costs of government extend far beyond what Washington taxes, borrows, and spends. The low-end estimates of the federal regulatory burden are $1.9 trillion per year—or nearly $15,000 for every household. The 116th Congress has a historic opportunity to bring to light an accounting of how the government operates and what values we pursue through Washington’s edicts.We have made some progress recently. Congress rediscovered the Congressional Review Act. Regulatory reform ideas proposed by CEI, such as a regulatory budget, have gained accep-tance, if not full adoption, in Washington. We will keep pushing for stronger reforms, but we still have a long way to go.Today we find ourselves in a moment where good ideas, many with bipartisan pedigree, point toward creating binding limits on the executive branch. Some seek to curtail the current administra-tion. Others would like to see fewer far-reaching rules from unaccountable agencies that receive far too much deference from the courts. Taken together, it is time to move a regulatory reform agenda even further.As I noted, we have a lot of work ahead of us. But we’ll also have opportunities to celebrate and reflect on our accomplishments. Again, I hope you can join us on June 20 for our 35th anniversary celebration.

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Publisher

Kent Lassman

Editor

Ivan Osorio

Associate Editor

Richard MorrisonThe CEI Planet is produced by the Competitive Enterprise Institute, a pro-market public interest group dedicated to free enterprise and limited government.

CEI is a non-partisan, non-profit organization incorporated in the District of Columbia and is classified by the IRS as a 501 (c)(3) charity. CEI relies upon contributions from foundations, corporations, and individuals for its support. Articles may be reprinted provided they are attributed to CEI.

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has more than halved, from 15.8 percent in 2011 to 7.6 percent in 2017. Rather than e-cigarettes acting as a gateway to smoking, as is assumed by government and advocacy groups, this indicates that teenage e-cigarette use is more likely diverting would-be smokers toward a less harmful means of nicotine consumption and potentially away from nicotine consumption altogether.Meanwhile, smoking is the leading cause of preventable death in America, according to the CDC, responsible for more than 480,000 deaths per year in the United States. By the government’s own estimates, more than 16 million Americans live with a disease caused by smoking, like cancer, heart disease, stroke, lung diseases, diabetes, and chronic obstructive pulmonary disease (which includes emphysema and chronic bronchitis).If e-cigarettes can help smokers make the switch and save them from disease and death, as research increasingly proves, isn’t that something we ought to celebrate? Instead, activists are demanding restrictions or bans on the availability of e-cigarettes, even though making e-cigarettes harder to buy or less palatable (by eliminating flavors) will result in fewer smokers switching.While one can understand the concern over adolescent nicotine use, the relatively minor risk it poses to the small percentage of teens vaping does not warrant sacrificing the many adult smokers at risk of serious illness and death. The math simply doesn’t add up if the goal is to improve public health.Anyone concerned about public health should be looking for effective, innovative ways to encourage smoking cessation or at least lower-risk products. Substituting e-cigarettes for smoking could prevent up to 7 million premature deaths in the United States, according to research-driven estimates. That’s why the hyped headlines and rhetoric about e-cigarettes and the recent FDA ban on e-cigarettes sales in convenience stores are so problematic.Government bans and restrictions on e-cigarettes may help government agencies and advocacy groups get millions of dollars in tax money, but they don’t help save lives.

Michelle Minton

(michelle.minton@cei.org)

 is a Senior Fellow at CEI and the author of the recent study,

Fear Profiteers: How E-cigarette Panic Benefits Health Activists

. A version of this article was originally published at Inside Sources.

E-Cigarette Panic,

continued 

Traders of the Lost Ark

Rediscovering a Moral and Economic Case for Free Trade

BY IAIN MURRAY AND RYAN YOUNG

https://cei.org/content/traders-lost-ark

Thanks to the generous support of our friends, the Competitive Enterprise Institute has remained a successful advocate for liberty for 35 years. The Legacy of Liberty Society recognizes the faithful support of any donor who desires to advance the principles of free enterprise and limited government through his or her will, trust, life income gift, retirement plan, life insurance dedication, or another planned giving instrument. Contributions to CEI are tax deductible. We accept gifts via check, credit card, cash, or Bitcoin—as well as stock or other securities and assets. CEI also accepts contributions in a will or trust. Including CEI in your estate plans is easy, and can be altered as needed.Consult your tax professional about the limits and conditions regarding charitable deduc-tions and your tax situation. For contributions in a will or trust, consult a tax or estate profes-sional for language that is appropriate for your estate and financial situation.

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COMPETITIVE ENTERPRISE INSTITUTE CEI.ORG

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Government bans and restrictions on e-cigarettes don’t help save lives.