We know that regulation costs – big-time, in fact. My colleague Wayne Crews estimates the cost of regulation to the American economy as around $1.8 trillion a year (and these costs are mostly hidden, a “costberg” as he puts it). Yet these costs aren’t just borne by regulated industries or landowners, they come down to us all at the household budget level.
In fact, the Institute of Economic Affairs in London has just pointed out in a new report that these costs weigh perhaps heaviest on the very poor. The normal reaction from the left to poverty is to demand more transfer payments to the poor in the form of welfare benefits. Yet deregulation could provide a substantial benefit to the poor at no cost to the public purse.