Mounting Regulations Cripple Growth in the U.S.
(Washington, D.C.) – According to a recent study by the Mercatus Center, the poorest Americans are also those who are most affected by cost increases that are a result of an exponentially increasing number of federal regulations. The research indicates that the effects of regulations are most harmful to the poor because regulations drive up the cost of doing business, resulting in higher prices – and the goods and services to which low-income families devote much of their budgets are also the most heavily regulated. These findings are particularly troubling given the continuing increase in the federal regulatory burden – including 2,400 new regulations in 2014 alone, and rising to 81,611 pages of rules and restrictions by the end of last year.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“Low income families are forced to spend a far greater portion of their budget than others to keep up with the cost of regulations. While many regulations are well intended and necessary, they end up raising costs, and they are passed along to customers. That’s why government rules and mandates must be carefully evaluated before they are put in place.
For entrepreneurs and small business people – many of whom are Hispanic – burdensome regulations create more barriers to opportunity. If policymakers really want to help Americans, then they should look to reduce the burden of unnecessary regulations that ultimately hurt competition, stifle innovation, and hold back economic growth.”