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Every Federal Regulator Destroys 138 Jobs

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From the Brownstone Institute

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This lost output is made of jobs and businesses that were never started. Or were stunted by strangling regulations — mom and pops chased into bankruptcy as collateral damage to new regulations — say, a diner forced to spend $30,000 on a low-energy exhaust fan.

An Auburn University study says every single regulator destroys fully 138 private sector jobs every year you keep him on the job.

With nearly 300,000 federal regulators, the shock is that we still have any jobs at all.

The Two Scariest Words in the English Language

A lot of the excitement around the Department of Government Efficiency — DOGE — focuses on the dollars saved. But more important is all the things the federal government destroys with those dollars.

Specifically, the millions of jobs destroyed by the two scariest words in the English language: federal regulators.

A few weeks ago I mentioned how DOGE under Elon and Vivek is taking aim at the regulatory mothership that strangles the American economy and fuels the totalitarian administrative state — you may remember it from Covid.

A mother ship that is oddly enough unconstitutional according to a pair of recent Supreme Court decisions — Loper Bright Enterprises v Raimondo and West Virginia v EPA.

I asserted this could unleash the economy like nothing we’ve seen in the past century.

And the reason is because it’s hard to overstate just how destructive regulations are.

Every Regulator Destroys 138 Jobs

One 2017 study by the Phoenix Center and Auburn University found that every single full-time regulator destroys 138 jobs.

GDP-adjusted to today, that translates to $16.5 million of economic output. For a hundred-thousand dollar bureaucrat.

This lost output is made of jobs and businesses that were never started. Or were stunted by strangling regulations — which are generally bought by big corporations specifically to strangle small competitors.

Along with mom and pops chased into bankruptcy as collateral damage to new regulations — say, a diner forced to spend $30,000 on a low-energy exhaust fan.

So it’s not the bureaucrat’s hundred thousand salary that matters. It’s the 138 jobs he takes out. Every single year you keep him around.

In fact, you could fire him, keep paying him for life, and still put a hundred families in the middle class.

In recent videos I’ve mentioned research saying one dollar in taxes destroys 3 dollars in GDP. A regulator blows that out of the water — each dollar in regulator salary destory 112 dollars in output.

Given there’s roughly 288,000 full-time federal employees involved in regulatory activities, that implies an annual cost of regulation of around $5 trillion. One-fifth of our entire economy.

This means DOGE slashing tens of thousands of regulations could spark Morning in America even if we keep every last one of them on the payroll.

The Top 3 Regulatory Offenders

The worst 3 regulatory offenders are the EPA, which prey especially on small businesses least able to afford their never-ending mandates.

Second is securities mandates — namely Dodd-Frank and Sarbanes-Oxley — that have all but closed public markets to start-ups and shelter banks and insurers from competition.

And labor regulations — namely FLRA, NLRB, an alphabet soup including Obamacare mandates and occupational licensing. There are brutal for small businesses that might take a gamble on marginal workers but are locked in.

And they raise the cost of hiring to the point that companies downsize or move to China to survive.

Of course, these are just the start. The regulatory code has grown like a monster for a hundred years in literally every domain you can imagine, from braiding hair to collecting rainwater on your property to giving health advice — which is illegal unless you’re a doctor.

And, my personal favorite, the regulatory mandate to literally add poison — ethanol — to any alcohol that’s not taxed, including mouthwash. In case you thought the federal government would never poison you on purpose.

What’s Next

Deregulation is central to Trumponomics — low inflation and fast growth.

Because the best way to do both is to reduce the federal burden — the spending, sure, but above all the forest of regulations strangling our economy. Even if DOGE doesn’t manage to save a penny, gutting the regulatory state will pay us back 138-fold.

Republished from the author’s Substack

Author

Peter St Onge

Peter is an economist, a Fellow at the Mises Institute, and a former MBA professor.

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Essential goods shouldn’t be taxed

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From the Canadian Taxpayers Federation

By Jay Goldberg 

The Trudeau government’s two-month GST holiday on certain items has been called many things.

Former finance minister Chrystia Freeland resignation letter suggests she thinks it’s a “gimmick.”

Conservative Leader Pierre Poilievre has called it a “tax trick.”

But here’s a more fundamental question: If the government thinks Canadians needs a sales tax holiday on certain items, why are those basics taxed in the first place?

Items like car seats, diapers, and pre-prepared foods are all taxed by the feds. They’re all also subject to the federal government’s sales tax holiday, which Prime Minister Justin Trudeau says was triggered because Canadians are having a hard time making ends meet.

“Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket,” said Trudeau at his GST holiday announcement.

At least Trudeau seems to know it’s bad for governments to set prices. But the government does raise prices by adding sales tax on top of goods Canadians have to buy.

And you don’t need to be a parent to know that car seats and diapers are among the most essential goods on a parent’s shopping list.

Take a car seat. A mid-tier car seat costs around $250. The federal sales tax, which is currently at five per cent, adds $12.50 to the final cost of that car seat.

Parents across the country are no doubt asking why things like car seats and diapers were taxed by the feds in November, will be taxed again by the feds in March, but aren’t being taxed right now.

What justification can the government possibly give to parents on Feb. 16, 2025 – the day this sales tax holiday ends – for once again taxing things like car seats and diapers?

The same goes for pre-prepared meals. Many Canadians buy pre-prepared food at grocery stores to bring to work for lunch or to eat on the go. Why are the ingredients for that pre-prepared meal not taxed but the final meal is? And why take the tax off a grocery store deli sandwich now but not a few months from now?

There’s even more of an argument to be made on this front because many provinces don’t tax a lot of the items that are part of the feds’ sales tax holiday.

Take Ontario as an example.

Canada’s most populous province doesn’t tax things like books, children’s clothing, car seats, and diapers. Some pre-prepared foods aren’t taxed either.

If provinces don’t tax these items, why do the feds?

The Trudeau government took inspiration from the NDP when it comes to the GST break. It ought to also take inspiration from the party’s call to make relief permanent.

Trudeau’s GST announcement came just days after NDP Leader Jagmeet Singh called for the permanent removal of the federal sales tax on items like pre-prepared meals, diapers, and car seats. Singh’s proposal actually went much further, and included ending the GST on home heating, as well as internet and phone bills.

In touting his proposal, Singh argued that “those taxes never should have been there in the first place.”

Singh is right. Essential goods shouldn’t be subject to the GST. Period.

Just days after Singh’s announcement, Trudeau played copycat with one of his own.

But a two-month reprieve pales in comparison to permanent relief.

If the Trudeau government wants to deliver real relief to struggling Canadian families, essential items that most provinces already don’t tax, such as diapers, car seats, and pre-prepared meals, should be permanently exempt from the GST.

Permanent sales tax relief is more than doable. The feds could deliver on it without hiking the deficit by taking a sledgehammer to the more than $40 billion a year they hand out in corporate welfare.

Anything less than a permanent sales tax break simply won’t cut it when it comes to cutting costs for Canadians.

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US Expands Biometric Technology in Airports Despite Privacy Concerns

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Biometric systems promise efficiency at airports, but concerns over data security and transparency persist.

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Biometric technology is being rolled out at US airports at an unprecedented pace, with plans to extend these systems to hundreds more locations in the coming years. The Transportation Security Administration (TSA) is driving a significant push toward facial recognition and other biometric tools, claiming improved efficiency and security. However, the expansion has sparked growing concerns, with privacy advocates and lawmakers voicing concerns about data security, transparency, and the potential for misuse of such technology.

US Customs and Border Protection (CBP) has already implemented its Biometric Facial Comparison system at 238 airports, including 14 international locations. This includes all CBP Preclearance sites and several major departure hubs. CBP says its Biometric Exit program is rapidly gaining traction, with new airport partners joining monthly and positive feedback reported from passengers.

Meanwhile, the TSA has equipped nearly 84 airports with its next-generation Credential Authentication Technology (CAT-2) scanners, which incorporate facial recognition. This rollout is part of a broader effort to bring biometrics to over 400 airports nationwide. These advancements are detailed in a TSA fact sheet aimed at building public awareness of the initiative.

Opposition and Privacy Concerns

Despite assurances from TSA and CBP, critics remain skeptical. Some lawmakers, led by Senator Jeff Merkley, argue that the TSA has yet to justify the need for biometric systems when previous technologies already authenticated IDs effectively. Privacy advocates warn that the widespread use of facial recognition could set a dangerous precedent, normalizing surveillance and threatening individual freedoms.

The debate is closely tied to the federal REAL ID Act, introduced two decades ago to standardize identification requirements for air travel. As of now, many states have failed to fully implement REAL ID standards, and only a portion of Americans have acquired compliant credentials. Reports indicate that fewer than half of Ohio residents and just 32 percent of Kentuckians have updated their IDs, even as the May 7, 2025, deadline approaches.

Biometric Adoption on the Global Stage

Beyond the US, biometric systems are gaining momentum worldwide. India’s Digi Yatra program has attracted 9 million active users, adding 30,000 new downloads daily. The program processes millions of flights while emphasizing privacy by storing data on users’ mobile devices rather than centralized databases. Plans are underway to expand the program further, including international pilots scheduled for mid-2025.

While biometric technology offers alleged benefits, such as faster boarding and enhanced security, it also poses serious risks. Privacy advocates caution against unchecked implementation, especially since, one day, this form of check-in is likely to be mandatory.

The TSA’s aggressive push for biometrics places the United States at the forefront of this global shift.

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