The original intentions behind regulations were to address market failure, promote economic and social welfare, or advance other goals of policymakers, but even regulations with the best intentions have raised concerns for their unintended consequences. Additionally, many federal and state mandates have been reactive in nature, instead of forming or contributing to a coherent government strategy.
The reach the impact of regulatory bodies has had is immense. Small businesses feel the weight of the regulatory burden at the local, state, and federal levels, massive corporations base location and expansion based on regulations, and the sum total of regulation has led to slowed growth and competitiveness of many countries. Regulations impact a lot.
Take the occupational licensing regs of today. These requirements serve as a barrier to entry into the market, just as they were intended to decades ago as a response to racial or ethnic prejudices. are the legacy of earlier efforts to protect profits by limiting entry to the market. Modern occupational licensing is branded as necessary for quality control, but still works to protect the earning power of established providers. This is harmful to small businesses and entrepreneurs, and has recently been an issue with hair braiding at home.
Remember the EpiPen price scandal? The ridiculous price increase that left many in danger of serious complications from allergic reactions was possible because of regulations. There were few substitutes for EpiPen, which shielded it’s supplier from competition and allowed for a drastic price increase to around $600.
Some regulations and regulatory bodies are good and necessary. But when the Code of Federal Regulations has grown to 175,000 pages, and the small state of Delaware’s regulatory body alone includes 104,562 restrictions and would take 9 weeks to read in its entirety.
In normal times, state and federal government should examine their regulatory body and ask businesses for their perspective. Businesses are beholden to a high standard anyways if they want to keep customers, and too many regulations make it near impossible to make clear their margins, hire workers, or even get started in the first place.
Now, as we recover from the impact COVID-19 has had on our businesses, workers, and economy, our legislators must seriously consider the impact their policy decisions will have on rebuilding what was lost in 2020. In many cases, reducing and eliminating current regulations that are job killers could help some small businesses endure the crisis. The recovery of small businesses and jobs will spawn economic growth and a healthy job market.
Below is a list of some examples of just the regulatory bodies that have an impact on this massive regulatory burden on businesses. Keep in mind that this is not a comprehensive list, and that every entity on the list issues and enforces their own regulations. Each one is another weight on the shoulders of entrepreneurs and business owners, and not all are necessary to ensure a safe and productive market. This does not include county and city regulations that are enacted in addition to those put forth by these entities.
- Federal Trade Commission (FTC)
- Environmental Protection Agency (EPA)
- Occupational Safety and Health Administration (OSHA)
- National Institute for Occupational Safety and Health (NIOSH)
- Internal Revenue Service
- Social Security Administration
- Defense Department
- Centers for Medicare and Medicaid Services
- Federal Energy Regulatory Commission
- Consumer Product Safety Commission (CPSC)
- Equal Employment Opportunity Commission (EEOC)
- Federal Aviation Administration (FAA)
- Federal Communications Commission (FCC)
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve System (the FED)
- Food and Drug Administration (FDA)
- Interstate Commerce Commission (ICC)
- National Labor Relations Board (NLRB)
- Nuclear Regulatory Commission (NRC)
- Securities and Exchange Commission (SEC)
- Fair Labor Standards Act (FLSA)
- The Employee Retirement Income Security Act (ERISA)
- State Insurance Commissioner
- State Bank Commissioner
- Public Service Commission
- Department of Labor (DOL)
- Department of Natural Resources and Environmental Control (DNREC)
- Safety and Homeland Security
- Alcohol Beverage Control Commission
- Office of Highway Safety
- Merit Employee Relations Board
- Public Employment Relations Board
- Agricultural Lands Preservation Foundation
- Food Product Inspection
- Forest Service
- Harness Racing Commission
- Thoroughbred Racing Commission
- Cash Management Policy Board
- Delaware Health Care Commission
- Delaware Manufactured Home Relocation Authority
- Board of Manufactured Homes Installation
- Delaware River Basin Commission
- Delaware Solid Waste Authority
- Professional Standards Board
- Delaware Economic Development Authority
- Division of Public Health
- Fraud and Consumer Protection Division
- Board of Cosmetology and Barbering
- Human Relations Commission
- State Fire Prevention Commission
- Division of Motor Vehicles
- Various professional boards