Counteracting Regulatory Burdens
Options for restraining and reducing state regulatory growth
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A state government has two categories of economic policy levers available to it: the first is fiscal policy, tax- es and spending, and the second is regulatory policy.
Like taxes, regulations impose economic burdens. The state of Minnesota, for example, requires any- one applying for a cosmetology license to complete 1,550 hours of education, write three exams, and pay $285 in fees. While presented as being in the consumer interest, research finds that the only people who benefit from these regulations are those with licenses. Both customers and potential cosmetologists suffer, and economic welfare is…