Shocker: Regulations Reduce Output
We don’t know whether to say “duh,” or to just shake our head, but file this one under commonsense.
A new report shows that the exorbitant amount of regulations is leading to a reduction in manufacturing output:
“Regulations on U.S. manufacturing may reduce output by as much as $500 billion this year, according to an industry-sponsored study that cast doubts on President Barack Obama’s efforts to trim red tape in the federal government.
“The Obama administration has established an average of 72 regulations on manufacturers annually, an increase from the 45 per year imposed under President George W. Bush, according to the study, commissioned by the Manufacturers Alliance for Productivity and Innovation, based in Arlington, Virginia.
“‘It is imperative that the pace of new regulations be controlled and the cumulative burden of existing regulations be reduced,’ said the study, conducted by NERA Economic Consulting.”
Yeah, no kidding.
According to The Heritage Foundation, President Obama has imposed over 100 major regulations (defined as regulations costing industries more than $100 million annually) during his presidency. Combined, these regulations impose tens of billions of dollars in costs on the economy, which slows growth.
In May, President Obama’s regulatory czar, Cass Sunstein, said that rule changes implemented by the administration would save $6 billion a year.
Oh, great, so it’ll cost $500 billion a year in reduced output just to save $6 billion a year. We think the administration should be asking themselves “is it worth it?”