White House: Regulatory Burden Costs Low-Income Consumers And Small Businesses The Most
Last Monday, the White House Council of Economic Advisers (CEA) released a report on the cost of federal government regulation and overregulation in general. Among the CEA’s findings:
- Overregulation has cost the United States an average of 0.8 percent in economic growth per year since 1980.
- If the level of regulation in the United States had been held steady between 1980 and today, the U.S. economy would be 25 percent, or $4 trillion, larger.
- In 2015, completing paperwork to comply with federal regulations cost an estimated $881 billion, up from $143 billion in 1980.
- The cost per employee of complying with regulations was higher for small companies ($11,724) than it was for businesses with more than 100 employees ($9,083).
- The burden of government regulation falls most heavily on low-income Americans because they spend a larger proportion of their income on heavily regulated goods like gas and food.
- When European Union countries cut regulatory costs by 25 percent, real GDP went up by one percent per year.
- If a country deregulates enough to move from the most-regulated quartile in the world to the least-regulated quartile, its annual rate of growth could increase as much as by 2.3 percentage points.
Click here to read the full report.