Regulation isn’t a bad word until it costs the average American thousands of dollars annually. Let’s compare the price tags of federal regulations under Trump and Biden and then examine inflationary increases. It’s a difference worth noting.
During their respective administrations, Presidents Biden and Trump adopted contrasting approaches to federal regulations, leading to significant differences in associated costs.
Trump Administration (2017–2020):
President Trump prioritized deregulation, aiming to reduce the federal regulatory burden. A key initiative was Executive Order 13771, which mandated that two existing ones should be eliminated for every new regulation introduced. This policy sought to control and reduce regulatory costs. Analyses indicate that regulatory costs were substantially lower during Trump’s tenure than in previous administrations. For instance, the American Action Forum reported that the Trump administration’s regulatory costs were approximately 600 times lower than the Biden administration’s.
Biden Administration (2021–2024):
In contrast, President Biden’s administration has implemented new regulations across various sectors, including environmental protection, healthcare, and financial services. These initiatives have led to a significant increase in regulatory costs. As of September 2024, reports estimate that the Biden administration has imposed approximately $1.7 trillion in new regulatory costs.
This figure is comparable to the fiscal year 2024 federal budget deficit and is about the same as Australia’s GDP.
Comparative Analysis:
The disparity in regulatory costs between the two administrations is stark 600 times, and $1.7 trillion is a lot. This significant increase highlights how regulation can impact the economy, jobs, and cost of living. Still, more importantly, it reflects the differing policy priorities: while the Trump administration focused on deregulation to stimulate economic activity, the Biden administration has emphasized regulatory measures to address issues such as climate change, public health, consumer protection, diversity equity inclusion, etc. A testament that many have been saying for some time – go woke, go broke. Now you know – Think dishwashers, gas stoves, and other stuff that go with the Green New Deal.
Trump Years Push for Deregulation
Trump aimed to reduce red tape by introducing Executive Order 13771: “For every new rule, cut two.” The result?
Biden took a different road. His focus on environmental protections, healthcare access, and labor standards led to a surge in new rules. By 2024, the Biden administration had racked up about $1.7 trillion in regulatory costs (these numbers vary a bit because the Biden Administration has not complied fully with the law on cost comparisons for unfunded mandates. That’s a jaw-dropping number to pass on to the public.
Regulatory Costs:
- Trump Administration:
- Annual Regulatory Cost: Estimated at $6 billion.
- Biden Administration:
- Total Regulatory Cost: Estimated at $1.7 trillion.
- Per Household Cost: This equates to about $12,932 annually per household.
Supreme Court Decisions Tighten Agency Powers
In June 2024, the Supreme Court changed the game with Loper Bright Enterprises v. Raimondo, overturning the 1984 Chevron decision. The ruling pulled back power from federal agencies. No longer can courts defer to agency interpretations of vague laws. Now, judges must decide the meaning of laws themselves, giving stricter oversight to agency rules.
The day before, the Court ruled in SEC v. Jarkesy that agencies must take civil cases to federal courts, not handle them internally. This adds a new check on agency power, putting enforcement before judges.
Together, these rulings shift control from agencies back to the judiciary. This will likely slow the pace of costly regulations, as agencies now need clear approval from Congress before acting. It could mean fewer rules, lower costs, and a lighter regulatory burden for businesses and consumers.
For the first time in a while, there’s a chance to reduce the burden on businesses and, ultimately, on our wallets. This potential relief from future regulations should give us hope.
In short, Trump’s deregulation saved the average American a lot. Biden’s regulatory push, on the other hand, cost us dearly. The recent Supreme Court decisions could finally tip the scales back, easing the load on businesses and passing those savings on to consumers. Let’s hope the courts stay vigilant. Their vigilance is crucial for our economic well-being.
Sources:
1. American Action Forum – Analysis of the regulatory cost impact during the Trump and Biden administrations, including data on the estimated $6 billion annual cost under Trump.
2. Congressional Budget Office (CBO)—This agency provides information on unfunded mandates and their financial impact on state and local governments, providing context on regulatory costs and compliance burdens.
3. Washington Examiner—Coverage of the Biden administration’s regulatory cost total, estimated at around $1.7 trillion by 2024, comparable to Australia’s GDP.
4. Institute for Energy Research – Comparative analysis on the regulatory costs between Biden, Trump, and previous administrations, noting Biden’s significantly higher costs.
◦Institute for Energy Research
5. SCOTUS Blog (Chevron Doctrine Reversal) – Legal context on the Chevron reversal and its impact on federal agency powers and regulatory oversight.