Fewer jobs, lower incomes courtesy of Obamacare–Dodd-Frank style.
Regulator Without Peer
Anyone wondering why the U.S. economy can’t seem to grow at its usual pace should examine one product category where production is booming: federal regulation.
Washington set a new record in 2013 by issuing final rules consuming 26,417 pages in the Federal Register. While plenty of government employees deserve credit for this milestone, leadership matters. And by this measure President Obama has never been surpassed in the Oval Office.
The latest rule-making tally comes from the Competitive Enterprise Institute’s Wayne Crews, who on April 29 will publish his annual review of federal regulation in “Ten Thousand Commandments.” This is important work because politicians and the media treat regulation as a largely cost-free public good. Mr. Crews knows better.
Congress may be mired in gridlock, but the federal bureaucracy is busier than ever. In 2013 the Federal Register contained 3,659 “final” rules, which means they now must be obeyed, and 2,594 proposed rules on their way to becoming orders from political headquarters.
The Federal Register finished 2013 at 79,311 pages, the fourth highest total in history. That didn’t match President Obama’s 2010 all-time record of 81,405 pages. But Mr. Obama can console himself by noting that of the five highest Federal Register page counts, four have occurred on his watch. The other was 79,435 pages under President George W. Bush in 2008.
And the feds aren’t letting up. Mr. Crews reports that there are another 3,305 regulations moving through the pipeline on their way to being imposed. One hundred and ninety-one of those are “economically significant” rules, which are defined as having costs of at least $100 million a year. Keep in mind that the feds routinely low-ball their cost estimates so the public will continue to think regulation is free.
Drawing largely on government statistics, Mr. Crews estimates that the overall cost of regulatory compliance and its economic impact is about $1.9 trillion annually. This means that the burden of complying with federal rules costs roughly the annual GDP of Australia, Canada or Italy.
This regulatory tax makes U.S. businesses less competitive, but it also burdens every American because it is embedded in the prices of all goods and services. Mr. Crews estimates that “U.S. households ‘pay’ $14,974 annually in regulatory hidden tax,” or 23% of the average income of $65,596.
All of this is the fruit of ObamaCare, Dodd-Frank, and the manifold other expansions of government that have marked the Obama years. By far their greatest and most tragic cost has been slower economic growth, which has meant fewer jobs, lower incomes and diminished economic possibilities for tens of millions of Americans.
Read more here from the Wall Street Journal.