The verdict is in—and it’s really good news for U.S. business.
Last night’s highly anticipated nomination of federal appeals court judge Neil Gorsuch to succeed Antonin Scalia on the U.S. Supreme Court promises to provide a large measure of relief for American business suffering under the weight of overly onerous government regulation.
Paul Glenchur, a member of the Supreme Court and Ninth Circuit bars and Senior Policy Analyst at Hedgeye, explains that Gorsuch is a ‘solid conservative’ who ‘could play a key role reducing the rulemaking power of Administrative agencies.’
“If confirmed, Judge Gorsuch could play a key Supreme Court role in reducing or moderating the amount of deference appellate courts grant federal agencies when they adopt rules to implement legislative demands.”
As Glenchur explains in the video above, for years, the courts have generally allowed federal agencies to do what they want to do. It’s called “Chevron Deference.” Basically what this means is when an expert agency does something, the court looks at it and tends to say, “if it’s reasonable in terms of what the Congress said they can do, it’s legal.”
Judge Gorsuch doesn’t seem to buy that. Perhaps even less than his potential predecessor Justice Scalia.
As Glenchur said on The Macro Show this morning,
“If you think about it, there are a lot of regulations out there that were adopted late in the Obama administration that could be challenged as being improper stretches of legal authority to achieve a political purpose. Part of it was because Congress wouldn’t pass the laws that Obama wanted to have pass, so he did it through the agencies. But it may not be legal.”
Assuming President Trump’s pick is confirmed by the Senate, what we may likely see is a majority view soon develop which curtails the regulatory state.
“I think Judge Gorsuch could have a real impact on how federal agencies do their job for decades. That’s a big, big deal to industry and investors.”
Watch the 3-minute clip above for deeper analysis from Glenchur.