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Thread on why most regulations have drastic negative effects on the economy:
This is study from the Journal of Economical Growth found that regulations "have reduced real output growth by about two percentage points on average over the period 1949-2005" https://www.researchgate.net/publication/23968096_Federal_Regulation_and_Aggregate_Economic_Growth
Another study found that the effects of federal regulations can be regressive and hurt low-income households the most by raising consumer prices:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3191409
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3191409
This study found that banking regulations increase income inequality by limiting lower-income household's access to credit: https://www.econstor.eu/bitstream/10419/212221/1/bof-rdp2012-018.pdf
This study looked at regulations and their effects on poverty. It found that "10% increase in the effective federal regulatory burden on a state is linearly correlated with approximately a 2.5% increase in that state’s poverty rate."
https://link.springer.com/epdf/10.1007/s11127-018-0603-8?author_access_token=r05u5SQXb57aPxD1rVezOfe4RwlQNchNByi7wbcMAY5k_QqX59HfmkZx2ZBIWKjFKl372caAiyNP4eHBdGUagHsGVuuryClbzNLcNJbXu9C_Nu5X8nQooKZd0rxwWtpAjj20gmf3kj0UGbtZXrCGHw%3D%3D
https://link.springer.com/epdf/10.1007/s11127-018-0603-8?author_access_token=r05u5SQXb57aPxD1rVezOfe4RwlQNchNByi7wbcMAY5k_QqX59HfmkZx2ZBIWKjFKl372caAiyNP4eHBdGUagHsGVuuryClbzNLcNJbXu9C_Nu5X8nQooKZd0rxwWtpAjj20gmf3kj0UGbtZXrCGHw%3D%3D
Another study found that regulations decrease competition and firm and job growth. A "10 percent increase in regulation leads to a 0.5 percent reduction in new firm births and a 0.9 percent reduction in hiring."
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3191318
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3191318
A study from the National Bureau of Economic Research found that regulations are partially responsible from declining competition and investment in the United States: https://www.nber.org/papers/w23583
I will add onto this thread as time goes on but regulations tend to increase income inequality, increase poverty, reduce economic growth, raise prices, and have more negative effects.
