Explosion of Federal Regulations Takes Toll on Economic Growth

Explosion of Federal Regulations Takes Toll on Economic Growth
Time for a New Government Approach on the Economy: Hands-Off

(Washington, D.C.) – Given the failure of current economic policies to generate real job creation and broadly shared prosperity, some in Washington are calling for greater attention to the increasing burden of regulation. Most regulations impose unnecessary burdens on businesses and individuals diverting scarce dollars away from consumption or investment – both of which can help stimulate growth and job creation- in order to comply.

According to research by the Mercatus Center , the Code of Federal Regulations, where all federal rules and regulations are detailed, exploded in size from 71,224 pages in 1975 to 174,545 pages last year.  Mercatus has also determined that the total number of federal regulatory restrictions exceeded 1 million in 2010.

Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:

"We are becoming a 'regulation nation'- Policy makers must use common sense when drafting rules and regulations that impact the most vulnerable: Main Street USA and business start-ups that make up 64% of net new private-sector jobs.  If we want to boost private sector job creation, we need Washington to get out of the way and let America's economic engine run. Instead, the President is giving speeches about  imposing more new and costly regulations if Congress refuses to rubber stamp his agenda.
 
Small business people and entrepreneurs must be allowed to focus on investments that create jobs and improve lives – not on complying with costly government regulations. In the last few years, the economy has seen extremely weak growth – attributable in part to costly and intrusive rules under the Dodd-Frank financial reform law, and the Affordable Care Act. Now we know that 2010 saw more new major rules issued than any year since 1997 – and the results have proven costly and unproductive."

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.