Shrinking the government footprint: Deregulation and the US economy

In the coming months, I’ll be sharing a series of insights on the Trump administration’s efforts to downsize the federal government and what they could mean for the economy, industry, and markets. I begin with Trump’s focus on deregulation. Through the first 30 days of his second term, he signed more than 70 executive orders and, as promised during his campaign, reducing regulations was one of his key objectives. In this note, I look at the state of US regulation from an economic cost standpoint and explain why cutting red tape should yield several benefits, including for growth and inflation. I also touch on some of the potential drawbacks of this approach.

How costly is the existing regulatory environment?

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