THE election of a Republican Congress has signally failed to reduce the size of the Federal Government. This Congress recently passed the largest transportation bill ever—a cornucopia of unnecessary federal spending. For fear of offending farmers, Speaker Gingrich personally halted the attempt to eliminate ethanol subsidies. The budget may be balanced, but it remains bloated. Domestic spending continues to rise as a percentage of GDP.
The story with federal regulations is much the same. The Republican Congress has not curtailed the jurisdiction of any important regulatory agency; it has not abolished a single Cabinet department. Congress has already added to the regulation of health care by prescribing the length of hospital stays for specific procedures, and it seems poised to pass more such intrusive regulations.
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