Regulation: The Silent Job-Killer

Most people have no idea how pervasive and expensive regulatory compliance is in the U.S.  It is increasingly worse, especially under the Obama Administration’s EPA. 

Fresh on the heels of sacrificing U.S. industry on the mantle of global warming by taking over carbon emissions, the EPA has now set its sights on ozone.  The EPA itself estimates that compliance with a new standard for ozone emissions will cost industry at least $90 Billion per year. That’s $90 Billion — per year — that won’t be spent on increasing productivity and competitiveness, hiring new workers, or increasing wages. 

Oh, research by a Manufacturers Alliance/MAPI economist concludes that the costs are slightly higher than that:

• GDP would be reduced by $676.8 billion in 2020 (in 2010 dollars), an amount that represents 3.6 percent of projected 2020 GDP in the baseline case (2.5 percent annual GDP growth);

• Total U.S. job losses attributable to a 60 ppb ozone standard are estimated to rise to 7.3 million by 2020, a figure equal to 4.3 percent of the projected 2020 labor force;

• Job jeopardy and the impacts of a 60 ppb ozone standard are largest in states where there is considerable manufacturing and refining activity. The states with the largest job losses include: Texas, which would lose nearly 1.7 million jobs at a total attainment cost and reduction in GDP of $452 billion (in 2010 dollars); Louisiana, which would lose 983,000 jobs at a cost of $270 billion; California, which would lose 846,000 jobs at a cost of $210 billion; Illinois, which would lose 396,000 jobs at a cost of $98 billion; and Pennsylvania, which would lose 351,000 jobs at a cost of $86 billion;

• Together, annual attainment costs and reduced GDP in 2020 would total $1.7 trillion.

This, of course, is on top of the costs of carbon emissions regulation, the forthcoming 100,000+ pages of ObamaCare regulation, the FCC’s new net neutrality regulation, and so on.  Over-regulation is a large part of the reason that 9%+ unemployment and anemic growth is the new Obama normal.  Hope for a change in 2012.

Advertisements
Published in: on August 2, 2011 at 9:41 am  Comments (1)  

The URI to TrackBack this entry is: https://mangyredbonehound.wordpress.com/2011/08/02/regulation-the-silent-job-killer/trackback/

RSS feed for comments on this post.

One CommentLeave a comment

  1. […] Most people have no idea how pervasive and expensive regulatory compliance is in the U.S.  It is increasingly worse, especially under the Obama Administration's EPA.  Fresh on the heels of sacrificing U.S. industry on the mantle of global warming by taking over carbon emissions, the EPA has now set its sights on ozone.  The EPA itself estimates that compliance with a new standard for ozone emissions will cost industry at least $90 Billion per yea … Read More […]


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

%d bloggers like this: