It's really crazy how strongly wealth inverse correlates with regulatory burden
It's really crazy how strongly wealth inverse correlates with regulatory burden
If you make it easy for people to start and run businesses and don't get in their way too much, everyone gets wealthier
If you make it hard for people to start and run businesses and get in their way constantly, everyone gets poorer
You can see the effect clearly within the EU:
Countries with low regulatory burden like Switzerland and Ireland have much higher incomes than places like Spain or Hungary where its regulatory burden is high
Regulatory burden data source is:
- World Bank's Regulatory Quality, combined with
- US's Cato Institute data on "Regulatory Policy" to get state level data
In US, you have the opposite effect
Which is partly because California is where all the tech is, but also because US as a whole already has quite pro-business regulation so it's easy to build a business there
So possibly a little more regulation there helps while in EU we definitely need less
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