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Regulating Entrepreneurs Out of Business (Guest: Dustin Chambers)

May 10, 2018

In this episode of the Heartland Daily Podcast, the relationship between government regulations and income inequality is exposed.

In this episode of the Heartland Daily Podcast, Managing Editor Jesse Hathaway talks with Salisbury University Economics Professor Dustin Chambers about his new study on how government regulations drive up income inequality by inhibiting entrepreneurship.

Chambers, a Heartland Institute policy advisor, says that countries with more rules and regulations tend to experience higher levels of income inequality. Adding just one additional regulatory procedure for starting a new business increases a country’s income inequality by a measurable amount.

Increasing the cost of regulatory compliance, Chambers says, decreases the number of people who choose to go into business for themselves. In this way, regulations serve as a kind of taxation, discouraging economic activity and depressing innovation.
Author
Dustin Chambers is a professor of economics at Salisbury University. He earned his Ph. D. in economics from the University of California at Riverside in 2004. He is also a Policy Advisor for The Heartland Institute.
dlchambers@salisbury.edu
Author
Jesse Hathaway is the managing editor of Budget & Tax News, a publication of The Heartland Institute.
jhathaway@heartland.org @JesseinOH