Study: Regulation costs California economy almost $500 billion

[easymoney]

Conservatives and liberals often square off over the proper level of government regulation, but most people agree that some level of oversight is necessary to defend against fraud, waste, and abuse. But at what level does the regulation itself become waste and abuse, this time by bureaucrats rather than stakeholders in the markets? Two researchers at California State University Sacramento may not have the answer to that question, but certainly can argue that California has long since passed the threshold (emphases mine):

This study measures and reports the cost of regulation to small business in the State of California. It uses original analyses and a general equilibrium framework to identify and measure the cost of regulation as measured by the loss of economic output to the State’s gross product, after controlling for variables known to influence output. It also measures second order costs resulting from regulatory activity by studying the total impact – direct, indirect, and induced. The study finds that the total cost of regulation to the State of California is $492.994 billion which is almost five times the State’s general fund budget, and almost a third of the State’s gross product. The cost of regulation results in an employment loss of 3.8 million jobs which is a tenth of the State’s population. Since small business constitute 99.2% of all employer businesses in California, and all of non-employer business, the regulatory cost is borne almost completely by small business. The total cost of regulation was $134,122.48 per small business in California in 2007, labor income not created or lost was $4,359.55 per small business, indirect business taxes not generated or lost were $57,260.15 per small business, and finally roughly one job lost per small business.

Hot Air Blog Archive Study: Regulation costs California economy almost $500 billion

[dglover]

With so many laws and regulations on the books how can anyone expect a good citizen to know when they are doing wrong?

I believe the average law abiding citizens probably breaks some kind of law everyday without even knowing it.

It has become a circus out of control.