By Diego Sánchez de la Cruz
Image credit: Libre Mercado
As soon as he began his term as president of the United States, Donald Trump approved decree 13771. Under this regulation, each federal ministry and agency is obliged to eliminate two regulations for each new approved law. In addition, this decree requires that the net cost of introducing new regulations must be equal to or less than zero, which implies accompanying any measure of regulatory reinforcement with compensatory deregulation actions.
The problem of overregulation has significantly depressed economic activity in the United States. In 1960, the norms approved by the federal government added 20,000 pages, while in 2016 they reached 185,000. Such deterioration began to reverse in 2017, when the Trump government achieved a spectacular result in deregulatory matters, with 22 normative folds for each new norm approved.
Such progress was led by Naomi Rao, a leading jurist who had been advocating for such measures for years from her platform at the Mercatus Center, a prestigious center of liberal thought affiliated with George Mason University. According to the reports that Rao has produced, the cost savings now reach 23,000 million dollars, a relief after the regulatory reinforcement of the Obama era, when the continued approval of restrictions imposed burdens valued at 245,000 million dollars to families and American companies.
The benefit of deregulation
The impact of the deregulatory agenda is already being felt in the private sector. In this sense, the Council of Economic Advisors of the United States believes that, if this type of policy is maintained during the next five years, the average citizen’s income will have gone up 0.8%, an amount equivalent to $ 1,200 per household.
A good example of the savings generated by this new strategy is in the expense that consumers assume when hiring telephone internet services. Since the first four months of 2017, disbursement has fallen by 3%, thanks to a series of deregulatory measures introduced by the government.
Another good example of the savings allowed by the new regulatory framework is in the pharmaceutical area, where different federal rules have been modified to facilitate savings in the purchase of medicines. Compared to the expected spending levels for 2019, Americans now pay 11% less every time they go to the apothecary.
This article was published by Libertad.org on July 8th, 2019. Reproduced on Political Hispanic with authorization from said source. Also translated by Political Hispanic.
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