Regulating the Economy

Imagine the following:

Near your house are several businesses that you frequent.  Let’s say, a grocery store and a gas station.  What they sell are pretty essential; you can’t really do without them.  They are very conveniently located - it takes just a couple minutes to drive to each.

Now imagine that for some reason the roads you need to easily get to those stores are closed.  Maybe a bridge washed out and the township has no intention of rebuilding it.  You now have to drive miles out of your way to get to the stores.  What was a quick trip of a couple minutes is now a much bigger deal that requires a bigger commitment of time and more advance planning.  In all likelihood you will still go to the stores, but much less frequently.

This is what regulation does.  Business activity still occurs but it’s slower and less efficient.  The economy grows less and businesses hire fewer people.

You can see this in action by looking at which states are actually generating jobs.  Most of the jobs are being created in “pro-growth” states, not high regulation states.

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