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Biden’s $1.2 Trillion Regulation Bombshell

Biden’s $1.2 Trillion Regulation Bombshell

Jun 25, 2024

Biden’s $1.2 Trillion Regulation Bombshell

As the nation braces for a deluge of new regulations, a comprehensive study by the Job Creators Network projects an alarming impact on the American economy and small businesses. The study forecasts that an incremental $1.2 trillion in regulations is set to be imposed under the Biden administration, exacerbating the already staggering $1.9 trillion regulatory cost shouldered by Americans, which translates to an additional $10,000 on top of the $15,000 paid per household annually. This equates to a significant 20 cents per dollar of earned income absorbed by regulatory expenses before taxes are even considered.

New York Times

The breadth of these impending rules spans various sectors, including stringent emissions standards, enhanced staffing and diversity requirements, and meticulous global warming reporting mandates. Manufacturing restrictions threaten the very appliances we rely on daily, with anticipated price hikes for essential household items such as washing machines, furnaces, and air conditioners, some of which could see increases in the hundreds or even thousands of dollars. The Alliance for Consumers suggests these rules might render certain products, like gas stoves, obsolete.

Existing regulations have already driven up the cost of consumer goods significantly, with a study from Cambridge University highlighting the automotive industry, where regulatory costs have increased the price of a vehicle by $6,000 to $7,000, effectively eliminating more economical models from the market.

While the affluent may remain insulated from these regulatory impacts, middle and lower-income families are left to bear the brunt, potentially leading to a lower standard of living. Larger corporations, often seen as the architects behind these regulations through their political donations, stand to benefit while smaller competitors struggle to survive.

The onslaught of regulations has a particularly acute effect on small manufacturers, which face compliance costs of $50,000 per worker, often surpassing the salaries of the employees themselves. The National Association of Manufacturers underscores this disparity, noting the $30,000 cost for larger manufacturers. The upcoming regulatory changes target small businesses with onerous climate disclosure and procurement rules, threatening their ability to compete for federal contracts and imposing nearly $100 billion in additional expenses on 11 million small firms.

The regulatory wave, which has seen over 5,300 rules implemented since the Obama administration, briefly receded under the Trump administration's policy of eliminating two regulations for each new one. However, the current administration is doubling down, with Biden's team surpassing even the Obama-era benchmarks for regulatory proliferation.

In the midst of this regulatory onslaught, a glimmer of hope emerges from the Supreme Court case Loper v. Raimondo. A favorable ruling for the fishing boat operators, who challenge the financial burden of mandatory regulator accompaniment, could set a precedent for reining in the federal regulatory behemoth by requiring major rules to pass through Congress.

As the nation anticipates the outcome of this pivotal case, the specter of an ever-tightening regulatory stranglehold looms, threatening to outsource more jobs, reduce household purchasing power, and place the American dream further out of reach for many.


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