The Burdens of Bidenomics: Americans Face High Regulatory Costs
Amid growing concerns over the impact of President Joe Biden’s economic policies, a new report reveals that the Biden administration’s burdensome regulations have cost Americans approximately $10,000 per household. The report, authored by Casey Mulligan, a professor of economics at the University of Chicago, compares the regulatory records of President Biden, former President Donald Trump, and former President Barack Obama. The findings indicate that the Biden administration has been imposing new regulatory costs at an alarming rate, surpassing that of the Obama administration.
The study reveals that the Biden administration has been adding regulatory costs at a staggering pace of $617 billion per year of rulemaking. These costs, which do not include regulatory costs created by statutes and other non-rule regulatory actions, have already amounted to about $9,600 per household. If President Biden is reelected in 2024 and serves another four years, these costs could potentially skyrocket, reaching a cumulative $7 trillion, or almost $60,000 per household.
It is noteworthy that Biden has implemented fewer regulations per year than both Obama and Trump in almost every category. However, the current administration has introduced some particularly costly regulations, such as actions on student loans and vaccine mandates. The report highlights that a significant portion of the total regulatory costs is attributed to automobile fuel economy and emissions standards, along with health, labor, telecommunications, and consumer finance regulations.
In contrast to Biden’s approach, the Trump administration focused on deregulation, which significantly reduced regulatory costs. Mulligan’s report indicates that the Trump administration’s agencies, over four years, reduced regulatory costs by almost $11,000 per household. This figure does not even include the impact of Operation Warp Speed in producing a COVID vaccine. On an annual basis, President Trump was reducing regulatory costs by more than $300 billion per year of rulemaking, almost as fast as Presidents Obama and Biden were creating them at $600 billion per year of rulemaking.
Mulligan emphasizes that although Biden has already implemented meaningful deregulations, Trump’s deregulation efforts were more far-reaching. The report states that “President Trump showed that regulatory costs can be subtracted rather than perpetually added.” A four-year period of President Trump’s deregulation would have saved households a total of more than $21,000, creating a stark contrast to the trajectory of the Biden administration.
This report sheds light on the flawed cost assessments employed by government agencies, which often fail to acknowledge significant opportunity and resource costs associated with regulatory actions. Mulligan argues that these regulatory burdens contribute to economic stagnation, declining worker productivity, and wages that fail to keep up with inflation.
Interestingly, this news comes as Biden seeks to promote his economic policies heading into the 2024 presidential campaign. Despite his claims that “Bidenomics” benefits all Americans, economists have voiced skepticism, pointing to massive spending and historically high inflation as evidence of the detrimental impact of the president’s economic policies. While the White House emphasizes job growth, low unemployment, and a major infrastructure plan, recent polling indicates that Americans have little confidence in Biden’s ability to steer the U.S. economy. A significant number of voters feel that the economy is in poor shape, and only 20% believe that Biden’s policies are helping them.
The Biden administration’s regulatory onslaught poses a significant burden on American households, with costs amounting to $10,000 per household. As the regulatory pace continues to escalate, these costs could potentially reach a staggering $60,000 per household if Biden secures another four years. While previous administrations have also contributed to regulatory burdens, the Biden administration’s approach to regulation sets it apart. As the 2024 presidential campaign approaches, the impact of Bidenomics on the economy will likely be a focal point of debate.