My post on April 28th, entitled, “Entrepreneurism – America is fading!” can be looked at from a different perspective. What are the economic costs of the massive growth in regulations. Another graph will suffice.
Growth has been so anemic for so long, we’re now being told that this is the “new normal.” As the Bureau of Labor Statistics put it, “annual U.S. GDP growth exceeding 3% … is not expected to be attainable over the coming decade.” It lists everything as a cause, except for one thing: federal regulations.
What’s the cumulative impact of all these rules? A new study by the Mercatus Center at George Mason University tries to get an answer, and what it found is mind-boggling. The paper looked at regulations imposed since 1977 on 22 different industries, their actual growth, and what might have happened if all those regulations had not been imposed.
What it found is that if the regulatory state had remained frozen in place in 1980, the economy would have been $4 trillion — or 25% — bigger than it was in 2012. That’s equal to almost $13,000 per person in that one year alone.
OK. Time for a presidential primary Pop Quiz. Which presidential candidate will increase the burden of regulations the most?
a. Bernie Sanders
b. Hillary Clinton
c. John Kasich
d. Ted Cruz
e. Donald Trump
The correct answer is “a,” but 3/4th credit is given for “b.” Vote Republican! It is in everyone’s best interest.
And thanks to HP for sending this to me.