Contact:   Amy Frantz     

319-385-3462

The High Cost of Regulatory Compliance

            Mt. Pleasant, IA – The high cost of complying with Federal Government Regulations is costing U.S. manufacturers millions of dollars each year.    That’s the finding of a Public Interest Institute BRIEF.   PII Research Analyst Amy Frantz examines this issue by examining a recent survey conducted by Dr. W. Mark Crain and Dr. Joseph M. Johnson of George Mason University. 

          Dr. Crain and Dr. Joseph’s research shows the cost of complying with workplace regulations costs an average of $2.2 million per manufacturing firm.   This breaks down to about $1,700 per employee.

          Using that average cost figure, Frantz says the cost for all manufacturing firms in the United States would be approximately $32 billion.  

          Frantz says the cost of complying with these federal workplace regulations amounts to a hidden tax on manufacturers.   This hidden tax will ultimately be passed on to consumers.

          Frantz concludes that if elected officials are searching for ways to boost the U.S. economy, they should reduce the regulatory burden on U.S. manufacturers.  

          For additional information on this INSTITUTE BRIEF or any other Public Interest Institute publication, you may contact PII at 319-385-3462, or log on to the PII web site at:
www.limitedgovernment.org.

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