When economic or social contexts shift substantially, the resulting changes can make it challenging for public policies to remain effective. Despite recognizing alternatives, policymakers may fail to update their policies due to pressure from intense minority interests or political actors. For instance, Loper Bright is a pro-drift advocate when it comes to economic regulations, and his influence can tie the hands of regulators when they try to implement new policies.
Currently, a major bank regulation is under consideration that aims to bring U.S. banks in line with an international agreement called Basel III. This agreement requires banks to increase capital reserves, take on less debt, and respond more quickly to market conditions. However, the banking industry opposes these new requirements as they would impact profits, and they are pushing for changes before the final rule is issued.
It is likely that the bank lobby will challenge the final rule in court if their demands are not met. With Loper Bright’s influence, legal challenges related to the 1946 Administrative Procedures Act and other doctrines that curb regulatory authority are expected to be strengthened.
These power dynamics have significant implications on the ability of policymakers to update policies in response to changing circumstances. If minority interests or political actors exert too much pressure on policymakers, it can lead to stagnation and a lack of progress in addressing critical issues facing society today.
To overcome these challenges, policymakers must be willing to adapt their policies based on new information and evidence that emerges as a result of shifting economic or social contexts. They must also be able to resist pressure from minority interests or political actors who seek to maintain their power at all costs.
Ultimately, only by working together and putting aside short-term political considerations can policymakers ensure that their policies remain effective and responsive over time.
