The Economic Effects of Federal Deregulation since January 2017: An Interim Report
White House report estimates deregulation will raise real incomes by $3,100 per household per year, after 5 to 10 years.
Since January 2017, there has been a historic effort to reduce costly regulation, while protecting workers, public health, safety, and the environment. The Council of Economic Advisers (CEA) estimates that after 5 to 10 years, this new approach to Federal regulation will have raised real incomes by $3,100 per household per year. Twenty notable Federal deregulatory actions alone will be saving American consumers and businesses about $220 billion per year after they go into full effect. They will increase real (after-inflation) incomes by about 1.3 percent. Many of the most notable deregulatory efforts in American history, such as the deregulation of airlines and trucking that began during the Carter Administration, did not have such large aggregate effects.
This new approach to regulation not only reduces or eliminates costly regulations established by prior administrations but also sharply reduces the rate at which costly new Federal regulations are introduced. The ongoing introduction of costly regulations had previously been subtracting an additional 0.2 percent per year from real incomes, thereby giving the false impression that the American economy was fundamentally incapable of anything better than slow growth. Now, new regulations are budgeted and kept to a minimum.