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As Government Grows, Regulations Impose, the Economy Slows

June 16th, 2016 Comments off

regulatory_costs_incurred_during_construction__nahb__3_2016Saying people have forgotten President Reagan’s line: “The government is not the solution, it is the problem.” The larger the government grows, the slower the economic growth, writes Richard W. Rahn in washingtontimes.

The article MHProNews posted June 9, 2016 reports Donald Trump promises to end Dodd-Frank and its chokehold regulations through the CFPB that have all but ended financing options for the least expensive manufactured homes (linked here).

Oppositionally, Hillary Clinton promises to keep Dodd-Frank, likely beef it up, and oppose HR 650/S682.

Meanwhile, Rahn writes, At some point, economic growth is so slow that despite high levels of taxation and spending, the long-term situation gets worse rather than better for most people. The United States has suffered wage stagnation under the Obama administration, even with a huge growth in government spending and regulation,” he says.

A longtime supporter of the Center for Freedom and Prosperity (CFP), which supports global tax competition and smaller government, Rahn’s vision is for less tax-and-regulatory grab.

He says Dan Mitchell, chairman of the CFP board quotes former Michigan Democratic Senator Carl Levin (1979 to 2015) who said the CFP’s “activities run counter to America’s values and undermine the nation’s ability to raise revenue,” as tax receipts during his tenure skyrocketed from $463 billion to $3.2 trillion. Levin complained it was not enough, regardless of the economic and social damage it caused.

The two percent growth rate of the majority of the world’s developed economies is not sufficient to raise the standard of living for most people, and it is directly related to too much government regulation.

For most countries the optimum size of government is probably around 25 percent of GDP. The U. S. is at 42, Singapore and Hong Kong are around 18 percent while Switzerland is at 33. The last three mentioned entities all have per capita incomes higher than America, long life expectancy and medical care, a narrative that advocates of more government do not like to hear.

Reagan’s words echo again. Rahn: “This was never truer than today. Governments around the world are crushing economic growth and opportunity, and destroying basic liberties. This will not change until knowledgeable people bust the false narrative that more government will make things better.”

For MHARR’s Mark Weiss’ spearing take on over reaching regulations in the MH industry, click here. ##

(Graphic credit: National Association of Home Builders, March 2016)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.