Larry Kudlow: Regulations from the executive branch are an important cause of higher inflation

Last week, the EPA proposed a rule that would totally reverse a Trump decision on water permitting projects. This is dear to my heart, because we in the NEC worked hard on something called Section 401 of the Clean Water Act, which under President Trump's direction put a huge priority on fast-tracking major energy projects. We did the same thing on an even broader scale, regarding NEPA permitting rules. 

In both cases, whether it's clean water, or clean air, or infrastructure in general, Mr. Trump and his NEC, along with his EPA and other agencies, would've reduced permitting time to less than two years for all these projects. 

The Biden EPA is completely reversing all of this. On energy, the Bidens have applied ridiculous environmental restrictions using extremist metrics such as direct, indirect, cumulative and social cost of carbon metrics that could never be quantified, and where there is no body of evidence. 

Of course, the Bidens don't want to quantify it because they don't want any of these fossil-related projects — whether it's fracking, drilling and pipelining.  

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Ironically, the radical greenies in the Biden administration will wind up stopping virtually any infrastructure project, including wind and solar farms, and of course nukes. In fact, there won't be any infrastructure at all under their crazy new regulations — not roads, nor highways, nor bridges, nor tunnels — nothing. 

Remember, Transportation Secretary Pete Buttigieg has said more than once that roads are "racist." He's not really a car guy, either. In fact, nobody knows what he is, because he sure ain't a transportation secretary. In fact, I would suggest he's the anti-transportation secretary. 

This new Biden water permitting EPA regulation will allow states, territories and tribes to certify authority to (get this) "holistically" evaluate the water quality impacts of a federally licensed or permitted project. 

Please look up "holistic" in the dictionary. It says "mental and social factors." I'll start with "mental" and then we can explore "social" and, by the way, the states, territories and tribes can themselves determine what a reasonable period of time is to review project requests. 

Can I be blunt here? This is nuts. It goes beyond radical. It stops progress. 

This is anti-energy, anti-water. This isn't just anti-fossil. This is anti-renewable. This is anti-highway and road safety. This is anti-modernity. This is just "anti." 

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But this is pro-Dark Ages, as in 9th century AD and it goes beyond congressional legislation. It certainly revokes the one federal decision, embodied in last year's infrastructure bill, which was no great shakes on its own merits. 

This is radical, woke, climate change run wild. This is just ideology, not analysis. Holistic, mental and social doesn't even do it enough justice, but here's a final point. 

These onerous restrictive regulations from the executive branch are an important cause of higher inflation. If done efficiently, infrastructure could over time improve economic productivity, which is counter-inflationary. 

Of course, we should drill, drill, drill, producing more oil and gas. Gasoline just hit a new record of $4.86. That is inflationary. 

Remember, last week was supposed to be the launch of the inflation apology tour? As all the Bidens from the president on down apologized for missing the inflation problem and pledged to bring it down. In case you missed it, here's my favorite, which is Janet Yellen's hostage video: 

JANET YELLEN: Look, I think I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I, at the time, didn't fully understand.

Nice work, Janet. And the president himself pledged late last week to reverse the root causes of inflation, which he defined as... wait a minute... hang on... Vladimir Putin! Not spending, borrowing, money printing, regulating, but.... you guessed it! Putin! 

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Trouble is, a week after the inflation apology tour, a new liberal poll from ABC/Ipsos shows that 28% approve of Biden's handling of inflation, while 71% disapprove. 

Maybe Uncle Joe should just come out and say how much he loves high gas prices, which he actually did in Japan. At least he'd be telling the truth, but you know what folks, the cavalry is coming!

 This article is adapted from Larry Kudlow's opening commentary on the June 6, 2022, edition of "Kudlow."