Cost of Regulations

written by on 2025-02-03

Regulators are not without costs to the economy. More regulations (and regulators) cost jobs and the economy.

"Each $1 million change in the regulatory budget is associated with a change of about four regulator jobs. With our new update, we now find that a 10% cut in the regulatory budget results in a loss of 21,756 regulatory jobs. Given the average jobs impact of 3 million jobs over the five-year horizon, our updated analysis finds that one regulator costs the U.S. economy the equivalent of 138 private sector jobs per year. Each regulator costs the U.S. economy $11 million annually."

Reference:

Ford, George S. and Kim, Hyeongwoo and Spiwak, Lawrence J., What Is the 'Cost per Regulator' on GDP and Private Sector Job Creation? An Update on Prior Research (February 22, 2017). Phoenix Center Perspectives No. 17-01 , Available at SSRN: https://ssrn.com/abstract=2963287 or http://dx.doi.org/10.2139/ssrn.2963287
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2963287