Clearly, reducing the regulatory burden is vital to create the basis for robust economic growth. Forcing the entrepreneur to comply with regulations diverts resources to less-productive uses. Economic growth is created by entrepreneurs efficiently providing goods and services to their consumers. Regulations interfere with the basic process of production. Furthermore, the economic well-being of consumers is maximized by satisfying their wants at the lowest possible costs.
Regulations raise costs and hinder entrepreneurs from supplying many consumer goods.
Higher costs slow economic growth. The slow down in economic growth reduces incomes and makes everyone poorer. The costs of federal regulations are enormous. The figure below demonstrates that regulatory costs, using Hopkins' more conservative figure, are higher than federal individual income tax revenues. It also shows that the impact of federal regulations are growing faster under Clinton than after the declines of the 1980s.