June 22, 2015

GROWTH IS ESPECIALLY IMPORTANT TO THE JOBLESS FUTURE...:

Low-Hanging Fruit Guarded by Dragons: Reforming Regressive Regulation to Boost U.S. Economic Growth (Brink Lindsey, June 22, 2015, Cato)

[T]he U.S. political debate today is beset by intractable ideological conflicts over tax and budget policy, financial regulation, health care financing, and many other issues with a strong bearing on the climate for economic growth.

Despite today's polarized political atmosphere, it is possible to construct an ambitious and highly promising agenda of pro-growth policy reform that can command support across the ideological spectrum. Such an agenda would focus on policies whose primary effect is to inflate the incomes and wealth of the rich, the powerful, and the well-established by shielding them from market competition. A convenient label for these policies is "regressive regulation"--regulatory barriers to entry and competition that work to redistribute income and wealth up the socioeconomic scale. This paper identifies four major examples of regressive regulation: excessive monopoly privileges granted under copyright and patent law; restrictions on high-skilled immigration; protection of incumbent service providers under occupational licensing; and artificial scarcity created by land-use regulation.

Although there are vigorous debates about proper policy in all of these areas, the contending sides are not divided along left-right or Republican-Democratic lines. And it's not simply the case that one can find policy experts on both sides who favor reform. Rather, it's very difficult to find disinterested experts anywhere on the political spectrum who support the status quo. Such support is largely confined to the well-organized lobbies that profit from the current rules.


...since we need to create the wealth to redistribute.

Posted by at June 22, 2015 1:57 PM
  

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