The Role of Regulations on Inflation

The Role of Regulations on Inflation

"At a time when inflation is running rampant, there is little doubt that these massive rule increases are raising costs for Americans."

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” – President Ronald Reagan 

A major focus of our work at the Frontier Institute is to highlight government policies that are standing in the way of Montanans succeeding. 

One of the biggest barriers to Montana’s economic success is the accumulation of thousands of regulations. The build up regulation stifles economic growth and substantially increases the cost of doing business.

When leaders focus on keeping the growth of regulations in check it helps to ensure that entrepreneurship and innovation can continue to thrive.

In our January Red Tape Snapshot report we measured the scope of regulations in Montana. In our report we showed that Governor Gianforte’s Red Tape Relief Initiative was already working to repeal duplicative, unnecessary and burdensome regulations. Take for example a recent rule notice in which the Montana Department of Labor and Industry is proposing the repeal of 29 unnecessary regulations.

In contrast to Gov. Gianforte, a new report shows President Biden’s administration has opened the floodgates on new regulations. During his first 2 years in office, the Biden administration has added over 200 billion dollars of regulatory costs and over 135 million hours of additional paperwork. These numbers stand in stark contrast to the Trump administration, and even pail in contrast to the Obama administration.At a time when inflation is running rampant, there is little doubt that these massive rule increases are raising costs for Americans. Mercatus Center research found that a 15% increase in federal regulation hikes the cost of consumer goods by a full percentage point.

It is more important now than ever for our state and national leaders to focus on red tape relief. 

For Liberty,
Tanner Avery

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