The regulations that the Biden administration issued during the first two years of Biden’s presidency have cost the economy an estimated $309 billion, 50% more expensive than the first two years of the Obama administration, and about eight times as much as the rules Trump released in all four years of his presidency.
The American Action Forum (AAF) examined the impact of Biden’s 450 new federal regulations, finding that they have also generated compliance costs of about 197 million hours in new paperwork throughout the country.
While Biden’s rules have generated massive regulatory burdens on businesses and taxpayers, the Trump administration imposed rules that reduced these burdens. In stark contrast, at the same time in his presidency, Trump’s regulations saved the economy about $3.4 million and reduced the time spent on paperwork to just 518,940 hours.
After the first two years of Obama’s presidency, his administration had imposed 647 rules. These cost the U.S. economy $205 billion and created 87 million hours of paperwork time.
AAF’s Director of Regulatory Policy Dan Bosch said, “Any time you add costs to something, particularly in an inflationary environment, costs are going to continue to increase. Some regulations have savings, but the vast majority have costs that can help contribute to inflation.”
Bosch also said that it is unlikely that the Biden administration will reduce the pace of its regulatory costs over the next two years.
“I expected the Biden administration to rival the Obama administration in terms of regulatory costs, but so far they have exceeded those expectations,” said Bosch. “The current administration’s commitment to addressing climate change through regulations, rather than new legislation from Congress, means that we should expect to see these costs continue to climb.”
According to the AAF, the Biden administration’s most economically-taxing federal regulation was an Environmental Protection Agency regulation which forced carmakers to increase their average field economy to about 40 miles per gallon. Under the Trump administration, it had been 32 miles per gallon.
This regulation, meant to get automakers to manufacture cleaner vehicles, will cost the U.S. economy an estimated $180 billion.
GOP lawmakers have criticized Biden’s regulations for harming the U.S. economy and stifling economic growth. Rep. Roger Williams, R.-Texas, explained the harm that these regulations are doing to small businesses.
“Certainty is key for small businesses, and under the Biden administration, businesses are operating in fear of the next costly new regulation that will come down the pipeline,” Williams said. “As Main Street America continues to deal with rampant inflation and the consequences of the Biden administration’s failed economic policies, we should be looking for ways to make it easier for businesses to operate and compete, not inundate them with burdensome new paperwork.”
Rep. Blaine Luetkemeyer, R.-Mo., also accused Biden of decimating business owners with his oppressive regulations.
“Whether it is reckless spending or burdensome regulations, this administration is no friend to Main Street USA,” said Luetkemeyer. “This administration is the epitome of big government. This kind of policymaking is driving the economic headwinds Americans are currently facing.”