The impossible regulatory state of Joseph Biden is greatly increasing inflation and it’s virtually ignored except for occasional articles or brief mentions on network TV. The Foundation for Government Accountability, a nonprofit think tank, published a paper on the regulatory kingdom that is turning our economy into a hyper-controlled federal government entity. It’s shocking and doesn’t bode well for the future. It’s leading to inflation in ways that slip through the cracks of public attention.
People are moving out of blue states over crime and taxes and economic regulations that kill small businesses.
“The size of the regulatory state has reached record highs, according to the well-researched paper. The Code of Federal Regulations, which codifies all current federal regulations, already spans more than 105 million words across nearly 190,000 pages. Those pages include more than 1.3 million regulatory mandates and restrictions. Nearly half of those mandates and restrictions flow from just five federal agencies, with the Environmental Protection Agency leading the pack”.
What they don’t mention is that they are ideological in nature.
“The volume of regulations has soared by nearly 40 percent in the last two decades, with no sign of slowing down, according to FGA’s research. In 2021 alone, the Federal Register published nearly 75,000 pages of new proposed and final regulations, executive orders, presidential proclamations, and agency notices.
“Unfortunately, these costs will only continue to soar higher, as President Biden has issued more costly regulations than any other president in modern American history.
“On his very first day in office, Biden issued an executive order undoing the Trump administration’s work to establish regulatory budgets for federal agencies, along with several other regulatory reform initiatives.
“Worse yet, there is no end in sight. More than one in three regulations reviewed by Biden’s Office of Information and Regulatory Affairs has been economically significant—more than double the rate of the last four administrations.
“The report cites further that “Many factors are contributing to the massive inflation crisis facing everyday Americans. Expanded welfare benefits and the elimination of commonsense work requirements have exacerbated labor shortages that are driving up costs for businesses. The massive increase in government spending, with President Biden’s $1.9 trillion American Rescue Plan Act serving as a capstone, has played a major role. Issuing moratoriums on oil and natural gas leases, revoking permits for drilling and pipelines, promoting schemes to choke off access to capital for domestic energy companies, and other tactics in President Biden’s war on energy have also added fuel to the inflation fire.
“But one area that gets virtually no attention is the impact of the Biden administration’s regulatory spending spree.
“When Washington, D.C. wraps the economy in red tape, businesses must spend massive sums on compliance. Every dollar that goes toward hiring lawyers, filling out paperwork, and redesigning products and assembly lines gets passed to consumers through higher prices. In fact, increasing federal regulations by 15 percent leads to cost hikes of consumer goods and services by a full percentage point. The Biden administration’s regulation obsession will only drive prices and inflation higher.”
The entire paper can be found on this link.