Trying to Float in a Sea of Regulation: Perception and Reality About Regulatory Overload

Abstract

Most examinations of the effects of regulation examine individual regulations or policy areas. The same is true of most reforms to the regulatory process. This paper raises questions about this focus. We survey business-owners in five midwestern states about their attitudes toward regulation. We found widespread concern about the volume of requirements for compliance rather than any particular regulations. This finding is robust across numerous different survey questions. We also find however that concern over the volume of regulation varies by political party with Republican business owners much more concerned about regulatory volume than Democratic ones. This could be because Republicans have listened to political rhetoric blaming regulation for economic ills or it could be because business-owners with concerns about regulation flock to the political party that promises to curb government intervention in the economy. Further research is needed on why regulatory volume is a problem and the extent to which the perception it is a problem is politically driven.