Regulatory Restrictions : Democrat & Republicans At Fault

It's all about control of institutions and people that presidents and their administration believe is their duty to save the everyone from themselves. But what is puzzling is how this can happen even in Republican administration that claim they are for free market solutions?

The Accumulation of Regulatory Restrictions Across Presidential Administrations
Source: Patrick McLaughlin, Oliver Sherouse, "The Accumulation of Regulatory Restrictions Across Presidential Administrations," Mercatus Center, August 3, 2015.

August 11, 2015

Presidents and their administrations wield extraordinary authority over federal regulation. While executive agencies can only write rules within the bounds set by Congress, their mandates are often expansive. Presidents set priorities, appoint and direct agency leadership, and determine how and when to review proposed or existing rules for cost-efficiency and consistency.

The cumulative effect of regulatory increases by successive presidents is a near-doubling of total regulatory restrictions, from about 580,000 when President Carter took office to about 1,070,000 in 2014. Which presidents contributed most to the accumulation of restrictions?

• President Obama not only oversaw the greatest increase in regulatory restrictions in a single term, his first, but as of 2014 he has edged past President George W. Bush as the president with the greatest total increase in restrictions since 1976.
• Presidents Carter and George H.W. Bush both had increases of more than 70,000 in their first terms, but both lost their reelection bids.
• Interestingly, while Presidents George W. Bush and Clinton both added regulations at similar rates across their two terms -- with Clinton adding significantly fewer restrictions overall compared to Bush -- President Reagan oversaw a large increase in regulation during his first term, but a relatively small increase during his second term.

A picture emerges of a 40-year bipartisan trend of regulatory accumulation, with the last two presidents adding the most regulatory restrictions. However, some presidents, such as President Clinton and President Reagan in his second term, were able to significantly restrain the growth of regulation.

Future presidents will need to look to their predecessors to determine how to effectively manage the cumulative effect of regulation and maintain the necessary conditions for entrepreneurship and growth.