regulations as a "panacea": exploring the consequences
TRANSCRIPT
Capturing and Comparing Changes in the Volume, Scope, and Burden of Federal Regulations
Patrick A. McLaughlinSenior Research Fellow
Mercatus Center
Federal Register Pages Printed Each Year
RegData
New way to quantify federal regulation
Innovations:• Based on words in regulatory text• Measures regulation specific to CFR Title• Permits industry-specific indexing of
targeted regulation
Example
One sentence from 29 CFR Part 1926 Section 416
Before work is begun the employer shall ascertain by inquiry or direct observation, or by instruments, whether any part of an energized power circuit, exposed or concealed, is so located that the performance of the work may bring any person, tool, or machine into physical or electrical contact with the electric power circuit.
The Accumulation of Regulation
820,000
840,556
861,111
881,667
902,222
922,778
943,333
963,889
984,444
1,005,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Restrictions
45,000
46,250
47,500
48,750
50,0001997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Restrictions in Labor
Labor
Restrictions in Specific Titles
40,000
46,250
52,500
58,750
65,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
IRSLabor
Labor, IRS, and Environment
40,000
70,000
100,000
130,000
160,0001997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
EnvironmentIRSLabor
Regulation by Industry
Paper Manufacturing
Paper Manufacturer Paper Manufacturers
Industry Regulation Index - Manufacturing
Industry Regulation Index – 3 Industries
Why is this important?
RegData provides:• Visualization of growth of
regulation across titles and agencies
• Tool for research
RegData.Mercatus.org
Matthew MitchellSenior Research Fellow
OPPORTUNITY: DENIEDWhen Regulations Pick Winners & Losers
must rein in business”
“Regulation is crushingbusiness”
LEFT RIGHT
Regulation“
36 States Require “Certificates of Need”
to Open a Health Facility
Regulations Restricting
Entry
10 States Require License to Braid Hair
Regulations Restricting
Entry
[T]he verdict is nearly unanimous that economic regulation over rates, entry, mergers, and technology has been anticompetitive and wasteful
“
”
[T]he verdict is nearly unanimous that economic regulation over rates, entry, mergers, and technology has been anticompetitive and wasteful ...our unguided regulatory system undermines competition and entrenches monopoly at the public’s expense.
“
”
Regulations That Raise
Rivals’ Costs
THE CONSEQUENCES
Anti-Competitive
LowerQualityHigher
Prices
Privilege-Seeking Costs
$1 - $3.5 Trillion annually
$0
$6,111
$12,222
$18,333
$24,444
$30,556
$36,667
$42,778
$48,889
$55,000
1975 1980 1985 1990 1995 2000 2005 2010
Infla
tion-
Adj
uste
d D
olla
rs $42,662
Actual Per Capita Production
$0
$6,111
$12,222
$18,333
$24,444
$30,556
$36,667
$42,778
$48,889
$55,000
1975 1980 1985 1990 1995 2000 2005 2010
Infla
tion-
Adj
uste
d D
olla
rs $42,662
$54,071
Actual Per Capita Production
Per Capita Production with
Less Rent Seeking
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OPPORTUNITY: DENIEDWhen Regulations Pick Winners & Losers
