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Are government regulatory expansions associated with reduced economic growth?

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A 2013 study in the "Journal of Economic Growth" shows that federal regulatory expansions are associated with "substantial reductions" in U.S. economic growth. Likewise, several objective (though imperfect) measures show that federal regulations spiked under President Carter (1977-1981) and President Obama (2009-2017), and during these periods productivity growth, which is the most important driver of economic growth and living standards, crashed. Like the vast majority of economic studies, these data only show associations, and association does not prove causation. However, there are numerous mechanisms by which regulations can hamper economic growth, as detailed at the first link below.

DocumentationRegulations & Productivity2013 Paper



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