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.
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Why Active Forest Management?
There has been a lot of discussion about the best way to manage our forests, especially in the face of increasing catastrophic wildfires. In Frontier President & CEO, Kendall Cotton’s latest op-ed in Lee Newspapers, he addresses critics head on and makes the case for why a science based active forest management is the best strategy at our disposal. You can check it out HERE.
“This is the dilemma forest managers face: How do you reintroduce healthy fire into a landscape which has had it removed for a hundred years? That is where active forest management strategies come into play.”
Solutions to the Housing Crisis
There is no question that Montana is experiencing a serious housing crisis. A great new resource from the Billings Chamber of Commerce aims to help give local and state leaders the tools to make real changes. The resource provides policy solutions and studies on housing affordability – including Frontier’s Montana Zoning Atlas. If you’re curious about what can be done, you’ll definitely want to check this resource out.
“And, as you’ll read in the quotes from presidents and our governor below, there is a clear political consensus on addressing regulatory barriers, including exclusionary zoning, which drive up the cost of housing.”
Three cheers to Arthur Guinness
In this month’s Frontier History column, Frontier board member and nationally acclaimed author Lawrence Reed writes on how Arthur Guinness, the founder of Guinness beer, was a testament to how the free market can overcome political differences. You can check it our HERE.
“The founder’s personal popularity, more than two centuries since he died, is a testimony to the power of product over politics.”