STOP SAYING THAT! “Increased regulation hinders economic growth.”

At best this is a half-truth. For example, consider a new regulation on industrial air pollution. This would certainly add a financial burden to industries that produce air pollution, e.g., factories, refineries, etc. But, these represent only a fraction of the whole economy. More broadly, such regulations would create opportunities for innovation. There would be lots of money to be made from producing and selling air filters and other pollutant-reducing technologies. This would have the effect of growing and diversifying the economy, both in financial terms and in the creation of jobs. And then of course there are the non-economic benefits, notably less toxic air. So, please stop saying that increased regulation hinders economic growth.

Advertisements
This entry was posted in Economics, Public Policy and tagged , , , , , , . Bookmark the permalink.

One Response to STOP SAYING THAT! “Increased regulation hinders economic growth.”

  1. Susan says:

    A thought provoking perspective on regulation in China that could be applied to the US. The current administration is attempting to remove regulations protecting the environment on the basis of improving the economy by retaining industry and increasing jobs. You make the case that regulation might spur innovation, creating new industry and new jobs.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s