Without Federal Regulation, America Could Have a GDP of 53.9 Trillion

[Makalakumu]

http://frontpagemag.com/2013/dgreen...ation-america-could-have-a-53-9-trillion-gdp/

In a research paper that appears in the June 2013 issue of The Journal of Economic Growth titled “Federal Regulation and Aggregate Economic Growth,” economists John Dawson (Appalachian State University) and John Seater (North Carolina State University) examine the relationship between the growth in regulations (measured by the pages of federal regulations) since 1949 and economic performance (measured by real GDP growth)
Here’s part of the conclusion:Federal regulations added over the past fifty years have reduced real output growth by about two percentage points on average [annually] over the period 1949-2005. That reduction in the growth rate has led to an accumulated reduction in GDP of about $38.8 trillion as of the end of 2011. That is, GDP at the end of 2011 would have been $53.9 trillion instead of $15.1 trillion if regulation had remained at its 1949 level.

The government has slowly choked the economic engine that once made America great. All of the pointless freedom destroying infrastructure created to protect us and make things "fair" has actually made everyone poorer.

 

[granfire]

and 99% of the population at and below poverty level...

 

[Makalakumu]

and 99% of the population at and below poverty level...

With federal regulation, the gap between rich and poor has never been wider. I think liberals have it backward. They don't understand who really controls the government. It ain't them.

 

[Big Don]

Gee, I remember when I posted the same thing:

We all like healthy products, but the sword of government regulation is double edged. How do you stop large corporations from simply regulating their competitors out of business? How do you even know your products are safe when the regulatory agencies are captured by corporate money and they have a revolving door of "officials" that trump up "studies" to "prove" the safety of their products? Oh and what do you do if the government makes it illegal to sue the corporation for injuries by said products?

 

[WaterGal]

With federal regulation, the gap between rich and poor has never been wider. I think liberals have it backward. They don't understand who really controls the government. It ain't them.

When we had more regulation, in the 50s and 60s, there was a much more solid and prosperous middle class. After decades of deregulation, we don't.

Admittedly, a lot of that has to do with both the weakening of our unions and the loss of a lot of our manufacturing jobs to countries with impoverished citizens that will work for pittance.

 

[Makalakumu]

When we had more regulation, in the 50s and 60s, there was a much more solid and prosperous middle class. After decades of deregulation, we don't.

Admittedly, a lot of that has to do with both the weakening of our unions and the loss of a lot of our manufacturing jobs to countries with impoverished citizens that will work for pittance.

This study seems to indicate that there was less regulation in the past.

 

[granfire]

With federal regulation, the gap between rich and poor has never been wider. I think liberals have it backward. They don't understand who really controls the government. It ain't them.

I think you are not looking far enough back.

Do you think that any of the current tycoons could hope to amass enough wealth and cloud to replicate Biltmore? I mean, including the thousands of acres they had to sell when they had to start to pay <gasp> taxes?

I am thinking your sources are faulty, because currently we are at the mercy of no more than a handful of conglomerates world wide, controlling our food supply and whatever else we need to live our modern lives.
Some certainly seem to go against anti trust regulations we had in the past....

 

[Bob Hubbard]

I seem to recall John Stossel doing a report on just how many regulations, laws, requirements and restrictions there are in place concerning setting up a lemonade stand, and how many parts of the US send the cops after kids setting up. Locally, we're seeing heavy pushback against food trucks, yard sales, and more. In another thread we're seeing -raisin growers- mandated to give the government almost half their crop in unpaid 'tribute'. I think we could do with a little less micro management from Big Brother. But it's only going to get worse, as cash strapped governments seek more fees to pay for their bloated inefficiencies, and more special interests shut down potential competition through manipulation of the legal process.