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In this episode of The Heartland Daily Podcast, managing editor and research fellow Jesse Hathaway talks with Salisbury University associate professor of economics Dustin Chambers about a new paper published by the Mercatus Center, examining how federal regulations affect the prices of consumer goods, and consumers themselves.
Chambers explains how regulations act like a regressive tax, taxing people who earn less money more heavily than others, eating up more of their paychecks. Regulators and policymakers often claim that regulations are intended to protect the poorest and most vulnerable consumers, Chambers says, but the effects of regulations are most harmful to the poor because regulations drive up the cost of doing business, resulting in higher prices. By considering the cost of regulations and limiting the raw number of regulations the government is allowed to enact, Chambers says lawmakers can offer a form of “tax relief” by applying common sense to their decision-making processes.