Bad regulation is our biggest public scam

Bad regulation is our biggest public scam

June 23, 2013
Originally published in The Times of India

In the US, the Competitive Enterprise Institute recently surveyed the extent and cost of federal regulations. The Federal Register, a compendium of regulations, has swollen from 2,620 pages in 1936 to 44,812 pages in 1986 and 78,961 pages today. Anybody thinking the US is a land of free enterprise is woefully out-of-date.

The CEI estimates the cost of compliance with these regulations at a whopping $1.8 trillion a year, nearly 12% of GDP. We need similar estimates of the cost of compliance in India. When the costs are sky-high, corruption will surely replace compliance.