While the Dow collapses, we have a bull market in government regulations. The 50-plus departments, agencies and commissions are now at work on 3,882 rules; 757 will affect small businesses. More than 51,000 final rules were issued from 1995 to 2007. Those regulations are not free.
Enforcing and overseeing them costs $42 billion per year. A far bigger cost — one that is not counted in the budget — is compliance. Regulatory compliance costs of $1.16 trillion are now higher than Canada’s entire 2004 GDP ($1.017 trillion).
At a time of lackluster 1% economic growth, the regulatory state costs 8.5% of U.S. GDP. Combined with the 21% of GDP consumed by federal spending, we have a federal government that absorbs nearly 30% of economic output. None of this includes state and local government, which push the burden of government up to 53.9% of GDP.
The Federal Register, which lists all new rules, ran to 72,090 pages in 2007. This was down 3.8% from 2006. The record year was 2004, which saw 75,676 pages.
Out of more than 60 federal departments, a mere five accounted for 45% of new rules. The departments of Treasury, Commerce, Agriculture, and Homeland Security, along with the EPA, instituted a combined 1,741 new rules in 2007.
Så mycket för att finanskrisen i USA skulle bero på den ”oreglerade” kapitalismen.