Dodd-Frank Cost $36 Billion, 73 Million in Paperwork Hours
A recent report from the American Action Forum (AAF) shows that total regulatory cost from the Dodd-Frank Act of 2010 now exceeds $36 billion. This report, published one day before the 6-year anniversary of Dodd-Frank, shows just how destructive the law has been.
In addition to the regulatory cost, the report also notes that the final rules impose 73 million paperwork hours on individuals and companies. Authors of the report, Sam Batkins and Dan Goldbeck, write: “To put those figures in perspective, the costs are approximately $112 per person or $310 per household; for paperwork, it would take 36,950 employees working full-time (2,000 hours annually) to complete a single year of the law’s paperwork, and those are based on agency calculations.”
This most recent evidence helps make sense of a Babson College report showing a drop in U.S. entrepreneurial activity from 14% in 2014 to 12% in 2015. Small and local community banks, crushed by the regulations imposed by Dodd-Frank, have stopped providing small business loans for entrepreneurs looking to start a business. In fact the sheer number of smaller community banks that could provide these loans has shrunk by 14 percent from 2010 to late 2014.
Smaller community banks also supply access to credit for potential homebuyers looking to purchase a home and real estate agents looking to sell more homes. Repealing Dodd-Frank would help ignite the U.S. economy as well as the housing industry. Legislation is currently being discussed that would repeal and replace significant portions of the Dodd-Frank act. Congress shouldn’t wait for Dodd-Frank’s 7th year anniversary before taking action to help rebuild our economy.