Talk to any owner of a business and they will tell you one of the major issues that inhibits the company's ability to grow is not only the level of regulations, but the proliferation of ongoing new regulations.
A recent report by the Heritage Foundation notes,
The spring 2011 Unified Agenda (also known as the Semiannual Regulatory Agenda) lists 2,785 rules (proposed and final) in the pipeline (emphasis added).
Of those, 144 were classified as “economically significant.” With each of the 144 pending major rules expected to cost at least $100 million annually, they represent at least $14 billion in new burdens each year.
Click to enlarge:
|From The Blog of HORAN Capital Advisors|
Another negative impact of increased regulations is that it swells the growth of government.
Regulatory staff at federal agencies (full-time equivalents) increased about 3% between 2009 and 2010, from 262,241 to 271,235, and is estimated to rise another 4%—to 281,832—in 2011.
Federal outlays for developing and enforcing regulations are also expected to grow by 4% this year, from $46.9 billion in 2010 (in constant 2005 dollars) to $48.9 billion.
Reducing the regulatory burden would be one way Congress and the administration in Washington could relieve some of the uncertainty facing companies in the private sector. Additionally, reducing the growth of regulations would stem the growth of government.
Source: Red Tape Rising: A 2011 Mid-Year Report
The Heritage Foundation
By: James Gattuso and Diane Katz
July 25, 2011