The Cost of Biden’s Regulations
Amanda Heckman|May 6, 2023
25,000 years.
That’s how much time has been wasted filling out forms thanks to regulations passed by Washington.
And that’s just since Biden took office.
Yet it’s more than the time wasted by both Trump- and Obama-era regulations… combined.
This data comes to us via the American Action Forum. It studies the weekly regulatory notices published by the Federal Register.
In just the final week of April, complying with new regulations cost $43.4 billion and added 108 million annual paperwork burden hours.
One of those regulations is a new rule from the EPA. It will reduce greenhouse gas emissions for heavy-duty vehicles… but at an upfront cost of $39 billion.
Yikes.
If you’re looking for one reason the economy has been growing at a meager pace for years…
We’ve got it.
What a Waste
Both Andy and Joel have talked about the waste and just plain stupidity of government red tape.
Joel has shown us how regulation and compliance in his industry are biased toward far larger outfits and put small businesses like his at a huge – sometimes crushing – disadvantage.
And Andy has exposed how regulations in the oil industry have put the energy sector at risk for shortages and sky-high prices.
But when we look at how regulations impact the economy as a whole… it gets worse.
According to a study by the Mercatus Center at George Mason University, the increase in red tape over the years “has created a considerable drag on the economy.”
It’s led to a 0.8% reduction in our annual GDP growth since 1980.
Here’s what that means…
If regulation had stayed at the same level it was in 1980, the U.S. economy would have been 25% larger in 2012. That’s $4 trillion lost to regulation… and $13,000 lost per capita.
What a waste.
And this study measured data between 1977 and 2012… We’re in a whole lot worse shape today. After all, many new regulations are passed each year… and few old ones are overturned.
It’s clear… Regulation kills investment and stifles growth. And it wastes a hell of a lot of time.
Amanda Heckman
Amanda Heckman is the editorial director of Manward Press. With unrivaled meticulousness, she has spent the past 15 or so years in the financial publishing industry. A classically trained musician and a skilled writer in her own right, Amanda takes an artistic approach to the complex world of investing. Her skill has led her to work with numerous bestselling authors, award-winning financial gurus, and – lucky for us – the fine folks at Manward Press.
