The real problem is that we have far too many government regulators. The size of our bureaucracy has exploded over the past two generations, which has led to an enormous increase in the volume of regulations. Measured by the number of pages required to print all of these notices and regulations in the Federal Register, our regulatory burden has grown out of control. In the 1950s, the Federal Register needed only 107,030 pages for the entire decade. For the first decade of this century, 730,176 pages were needed.
Rather than quibble about the number of new rules pushed each year, we need to limit the number of regulators.
The Phoenix Center published an innovative study in the past year documenting the cost of these regulations on our economy. The paper, titled “Regulatory Expenditures, Economic Growth and Jobs: An Empirical Study,” breaks down the cost of each federal regulator on our economy.
The findings are staggering.
Each federal regulatory agency employee cuts the GDP by $6.2 million, eliminates 98 private sector jobs, and destroys the equivalent of the economic value of 134 people.
Creating more jobs in the regulatory sector will not help grow our economy; the truth is dramatically the opposite, and the amount of regulations in the pipeline has grown under the Obama administration. Many complex and costly regulations have yet to be imposed on us but are required under ObamaCare and the Dodd-Frank Financial Act.
If we want to restore economic growth and improve our standard of living, we need to reduce the volume of regulations that choke the life out of our economy.