In the wake of the recent elections, there is one thing both parties still agree on: Middle-income families are being squeezed and voters are angry.
But why? And what should be done about it?
Our politicians have placed any number of barriers in the way of prosperity, and one of the most costly has been the Dodd-Frank financial reforms (DF).
Congress passed this 2,300-page law in 2010. It since has spawned a massive new regulatory environment with an impact reaching far beyond the nation’s $1.1 trillion financial services industry.
The Government Accountability Office provided an original estimate of Dodd-Frank’s direct cost: $2.9 billion over the first five years. If that is accurate, it means the law will cost the taxpayers roughly $600 million annually, or $5 for each private-sector worker.
The direct cost to taxpayers is only the beginning. Historical estimates show private-sector costs to comply with government regulations tend to be 36 times the direct cost to government.
If Dodd-Frank is typical, the annual cost of compliance will be more like $22 billion, or $188 for each private-sector worker.