Federal Regulations Cut Standard of Living by 75 Percent Over 56 YearsSubmitted by go213mph on Fri, 06/28/2013 - 20:10
So, if it weren't for the criminals in DC and on Wall-Steet, average household income for Americans would be in excess of 330K. END THE FED; HANG THE BANKERS; TAR AND FEATHER CONGRESS!
The 20th annual snapshot of the federal regulatory state published by the Competitive Enterprise Institute (CEI) last month announced the arrival of an unhappy milestone: Regulatory costs now equal more than half of all federal spending. Put another way, the real cost of government in the United States is half-again as much as the federal budget. It is approaching a third of the country’s economic output. Said CEI in its Ten Thousand Commandments 2013 report: “Federal environmental, safety and health, and economic regulations cost hundreds of billions — perhaps trillions — of dollars every year over and above the costs of the official federal outlays that dominate the [current] policy debate.”
Just how many billions and trillions the regulatory state costs, and has cost, the American economy has been put into perspective by two economists in their paper, “Federal Regulation and Aggregate Economic Growth,” published in the June issue of the Journal of Economic Growth. Rather than count the cost in dollars, the authors, John W. Dawson and John J. Seater, take a unique approach and attempt to measure how much lower Americans’ standard of living is today compared to what it would be if regulations had stayed at the level they were in 1949, the starting point of their study. Their conclusion? The average American household’s income would be $27,500 a month instead of the $4,400 a month that it is currently.
...Ronald Bailey, the science correspondent for Reason magazine and the author of "Global Warming and Other Eco-Myths," evaluated the loss in standard of living in a different way but came to same conclusion. By adding two percent to the real historical 3.2 percent annual rate of growth in America’s economy from 1949 through 2011 — and then doing the math — he found that America’s economic output would be $49 trillion, just slightly below the $53.9 trillion estimated by Dawson and Seater. Bailey notes coyly: Whatever the benefits of regulation [may be], an average household income of $330,000 per year would buy a lot in the way of health care, art, housing, environmental protection, and other amenities.