During the Obama Presidency, when it came to regulations, one was reminded of the Simpsons episode where Homer changed his name to "Max Power", and told his son, Bart, that there were three ways of doing things: the right way, the wrong way, and the "Max Power" way. To which Bart retorted, "Isn't that the wrong way?" and Homer replied, "yes, but faster!".
But the Obama administration had nothing on the Biden administration's "Max Power" approach! Under the Biden administration, the United States has seen an unprecedented surge in the cost of federal regulations, presenting a clear and present danger to our economic prosperity and the financial well-being of every American citizen.
Let's put the numbers in perspective: under President Obama, the cost of federal regulations doubled, climbing from $1.1 trillion to $2.25 trillion over eight years. During President Trump’s term, these costs held relatively steady, growing by a mere $30 billion. On a percentage basis, that's the least growth we've had in the modern regulatory state for any president, only 1.3% (the prior Republican president, George W. Bush, grew the cost of regulation by 10% in his eight years in office, and he was considered by the left to be "anti-regulation"!).
In stark contrast, in just over three years, President Biden has added a staggering $1.37 trillion in direct regulatory costs, according to a recent report by the American Action Forum (AAF). This surge in regulatory costs under Biden is approximately 45 times the amount accumulated under Trump and nearly matches the entire regulatory cost of the Obama presidency.
The magnitude of these costs cannot be overstated. The most expensive single rule—the Environmental Protection Agency's (EPA) tailpipe vehicle emissions rule—racked up $870 billion in costs, nearly equating the total regulatory costs of the entire Obama administration. Such astronomical figures signal a dramatic escalation in the regulatory state, one that promises to ripple across the economy, stifling growth and burdening industries and consumers alike.
The broader economic impact of these regulations is even more alarming. For every dollar of direct regulatory cost, there is an estimated $19 in lost opportunity cost. This implies a total economic impact running into the tens of trillions of dollars—costs that will ultimately be borne by American businesses and consumers through higher prices and reduced economic activity.
House Budget Committee Chairman Jodey Arrington has rightly pointed out the dire implications of such policies: "Biden’s burdensome regulations along with his tax hikes and unbridled spending are fueling the cost of living crisis under which working Americans are suffering." This statement captures the essence of the regulatory overreach we are witnessing—an overreach that not only impacts our immediate costs of living but also our long-term economic sustainability.
What is required now is a concerted effort to reverse this trend. The solution lies in cutting wasteful spending, reducing taxes, and importantly, rolling back unnecessary regulations. Such measures would not only alleviate the cost of living pressures but also spur economic growth and help reduce our unsustainable national debt.
The trajectory of regulatory costs under the Biden administration serves as a stark warning: without immediate action, we risk entrenching a bureaucratic quagmire that could undermine the economic gains of the past decade and curtail our future prosperity. As policymakers, industry leaders, and citizens, we must advocate for a regulatory environment that fosters innovation and growth, not one that suffocates it under the ever-growing weight of costly and unnecessary rules.
Homer Simpson's quip about the "Max Power" way being the "wrong way, only faster" makes for good comedy. It's a cartoon, after all, and a parody of real life. For the Biden Administration to double-down on their predecessor using this approach to grow the impact of the federal regulatory is just the opposite - it's real life, in the most-real way, and is anything but funny.
