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The End of the Chevron Doctrine Is Bad for Business

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Two recent Supreme Court decisions produced sweeping changes to how regulation works in the United States, shifting power from agencies to the courts.

Investment will now take place against the backdrop of the “judicial veto,” where a wide range of potential litigants and sympathetic judges will decide which regulations actually go into effect, and when. According to conventional wisdom, scaling back the regulatory state will help businesses. However, the court’s rulings will suppress business investment in three unintended ways.

The overall effect of this will be less innovation and reduced competitive advantage for U.S. businesses., shifting power to the courts. This change will limit — or at least slow — the enforcement of new rules across industries. Many in the business world havethe decisions, which U.S. Chamber of Commerce President and CEO Suzanne P. Clark said “will help create a more predictable and stable regulatory environment,” with less regulation generating more investment.

 

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