Imagine joining a new team sport, eager to play, only to find the coach halting the game every few minutes to introduce new rules.
Frustration mounts as you struggle to keep up, and the fun and competition fade. The game drags on, slowed by constant changes. If the coach had stuck to the original rules, the experience would have been more enjoyable and efficient. Similarly, the U.S. government’s ever-growing web of regulations bogs down businesses and economic growth.
Regulations are not inherently bad. Some aim to ensure safety and fairness, much like the rules in sports. The Food and Drug Administration, for example, protects consumers by ensuring food safety in stores and restaurants. Regulations also level the playing field, giving individuals and businesses fair access to loans, homes, or cars.
However, the regulatory burden has ballooned. The Federal Register spans roughly 190,000 pages, with thousands of new regulations added annually. This complexity confuses businesses and drives up compliance costs, stifling innovation. For instance, a company developing a new snack might face delays or roadblocks due to stringent nutritional labeling requirements.
According to the Mercatus Center, since 1980, regulatory growth has reduced economic growth by 0.8% annually. The Competitive Enterprise Institute notes that many rules are outdated or redundant. These regulations cost businesses an estimated $3.1 trillion each year.
One approach to slow the growth of the bureaucracy but accelerate the economy would be a regulatory freeze, halting new regulations. A freeze could save an estimated $1.4 trillion over ten years, allowing businesses to prioritize innovation and production over compliance. The Heritage Foundation projects that a freeze could boost economic growth by 2.1% and lower the cost of goods by 3.6% by 2035. Small businesses, often hit hardest by compliance costs, would gain room to grow.
A freeze would also enable the Trump administration to review existing regulations, eliminating the obsolete or unnecessary. By streamlining the rulebook, the government can foster a more dynamic economy while preserving essential protections.
The Trump administration is already committed to deregulation. Building on its previous efforts to slow the growth of regulation, the president requires that ten regulations be eliminated for every new rule promulgated.
By pausing new rules and pruning away old, unnecessary ones, the government gives small businesses breathing room to grow and innovate. The United States economy prospers when innovation and competition flourish, not when businesses are weighed down under piles of regulations.
A regulatory freeze is not about removing safeguards, but a chance to restore balance in our economy. If it adopts this plan, the Trump administration can set the stage for a more efficient regulatory system while fueling economic vitality.