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Every Federal Regulator Destroys 138 Jobs

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6 minute read

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

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Peter St Onge

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

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Land use will be British Columbia’s biggest issue in 2026

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By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

Resource Works News

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What Do Loyalty Rewards Programs Cost Us?

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You’ve certainly been asked (begged!) to join up for at least one loyalty “points” program – like PC Optimum, Aeroplan, or Hilton Honors – over the years. And the odds are that you’re currently signed up for at least one of them. In fact, the average person apparently belongs to at no less than 14 programs. Although, ironically, you’ll need to sign up to an online equivalent of a loyalty program to read the source for that number.

Well all that warm, fuzzy “belonging” comes with some serious down sides. Let’s see how much they might cost us.

To be sure, there’s real money involved here. Canadians redeem at least two billion dollars in program rewards each year, and payouts will often represent between one and ten percent of the original purchase value.

At the same time, it’s estimated that there could be tens of billions of unredeemed dollars due to expirations, shifting program terms, and simple neglect. So getting your goodies isn’t automatic.

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Just why do consumer-facing corporations agree to give away so much money in the fist place?

As you probably already know, it’s about your data. Businesses are willing to pay cold, hard cash in exchange for detailed descriptions of your age, sex, ethnicity, wealth, location, employment status, hobbies, preferences, medical conditions, political leanings, and, of course, shopping habits.

Don’t believe it works? So then why, after all these years, are points programs still giving away billions of dollars?

Every time you participate in such a program, the data associated with that activity will be collected and aggregated along with everything else known about you. It’s more than likely that points-based data is being combined with everything connected to your mobile phone account, email addresses, credit cards, provincial health card, and – possibly – your Social Insurance number. The depth and accuracy of your digital profile improves daily.

What happens to all that data? A lot of it is shared with – or sold to – partners or affiliates for marketing purposes. Some of it is accidentally (or intentionally) leaked to organized criminal gangs driving call center-related scams. But it’s all about getting to know you better in ways that maximize someone’s profits.

One truly scary way this data is used involves surveillance pricing (also known as price discrimination) – particularly as it’s described in a recent post by Professor Sylvain Charlebois.

The idea is that retailers will use your digital profile to adjust the prices you pay at the cash register or when you’re shopping online. The more loyal you are as a customer, the more you’ll pay. That’s because regular (“loyal”) customers are already reliable revenue sources. Companies don’t need to spend anything to build a relationship with you. But they’re more than willing to give up a few percentage points to gain new friends.

I’m not talking about the kind of price discrimination that might lead to higher prices for sales in, say, urban locations to account for higher real estate and transportation costs. Those are just normal business decisions.

What Professor Charlebois described is two customers paying different prices for the same items in the same stores. In fact, a recent Consumer Reports experiment in the U.S. involving 437 shoppers in four cities found the practice to be quite common.

But the nasty bit here is that there’s growing evidence that retailers are using surveillance pricing in grocery stores for basic food items. Extrapolating from the Consumer Reports study, such pricing could be adding $1,200 annually to a typical family’s spending on basic groceries.

I’m not sure what the solution is. It’s way too late to “unenroll” from our loyalty accounts. And government intervention would probably just end up making things worse.

But perhaps getting the word out about what’s happening could spark justified mistrust in the big retailers. No retailer enjoys dealing with grumpy customers.

Be grumpy.

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