Study: Cost of regulations for U.S. larger than Germany’s economy

Study: Cost of regulations for U.S. larger than Germany’s economy
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The cost of U.S. regulations is now larger than Germany’s economy, amounting to a $4 trillion loss to the American economy, according to a new study by the Mercatus Center at George Mason University.

The study, released Tuesday, found that regulations over the past several decades amount to a loss of $13,000 for each American worker. …


Researchers at Mercatus studied data from 22 industries from 1977 to 2012, finding regulations have distorted “investments choices that lead to innovation” and have “created a considerable drag on the economy.” The result: an average shrinking of the economy by 0.8 percent a year.

“If regulations had been held constant at levels observed in 1980, the American economy would have been 25 percent larger than it was in 2012,” the report said. “This amounts to a $4 trillion loss in 2012 for the American economy or $13,000 loss per person, a significant amount of money for most American workers.”

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