Total spending on federal regulatory activity and the number of federal regulators are both on the rise, according to a new study from Melinda Warren at the Center for the Study of American Business in St. Louis.

In fact, real federal spending on regulatory activity has been steadily rising since 1986 (but for a small drop in one year).  In 1996 dollars, regulatory spending registered $10.55 billion in 1986, rose to $15.26 billion by 1993, reached $16.76 billion in 1999, and is estimated to hit $18.34 billion in 2001.

Meanwhile, federal regulatory staff (full-time equivalent employees) had declined from a then high of 121,791 in 1980 to 101,804 in 1987, and then climbed to 130,043 by 1995.  By 1997, the number had declined to 124,048, but subsequently resumed rising to 125,727 in 1999 and is estimated to increase to an all-time high of 131, 983 in 2001.

Such trends are not surprising given the steady stream of regulations, rules and mandates emerging from our nation's capital.  Just like taxes, increased regulations mean higher costs for U.S. entrepreneurs, businesses, and ultimately, consumers.  Indeed, one of the greatest threats to our current period of economic growth is excessive government regulation.

Raymond J. Keating
Chief Economist
Small Business Survival Committee and co-author of U.S. by the Numbers:
Figuring What's Left, Right, and Wrong with America State by State