Regulations cost American manufacturing $500 million per year
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.
For those still in doubt as to whether or not excess red tape and regulations are hurting the economy and sending jobs overseas, this is as cut and dry as it gets. Exports may be reduced by as much as 17% as a result of the burdens of the regulatory state. Environmental regulations are reported to be the most expensive for manufacturing businesses, which isn’t shocking at all. It’s a near-guarantee that if President Obama wins a second term, the disastrous cap and trade legislation will return to Congress in a new form.
What these costs really amount to is a decline in production. Every hour, every dollar spent complying with regulations is time and money not spent doing productive work. We’re shipping fewer goods and more jobs overseas as a result of these regulations. We’re making fewer widgets and gidgets, so our GDP is growing more slowly. This is something that has to stop if America is ever going to be able to get back to a growth economy, full employment, and a balanced budget.