Jamie Dimon correctly seeks faster growth and identifies removing domestic regulatory obstacles as a promising route. Research shows federal regulatory accumulation reduced U.S. economic growth by approximately 0.8 percentage point per year between 1980 and 2012. The buildup distorts investment decisions, weakening business-led innovation.
Evidence from British Columbia demonstrates regulatory reform works. The Canadian province reduced its regulatory requirements by roughly 36% after reforms in 2001; this increased annual economic growth by about one percentage point. While results may differ if the U.S. cuts regulations by 36%, they support the regulatory budgeting approach British Columbia pioneered.
The approach involves three initial steps: inventory existing requirements, set reduction targets, and require agencies to identify rules where costs exceed benefits. Then continually measure success against economic performance and health, safety, and environmental outcomes. A serious effort to clear obsolete and counterproductive rules should be central to the growth agenda.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing