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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

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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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CIA Offers To Payout Entire Agency: REPORT

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From the Daily Caller News Foundation

By Hailey Gomez

The Central Intelligence Agency (CIA) reportedly offered payouts to its entire workforce Tuesday, according to The Wall Street Journal.

The CIA has apparently become the first intelligence agency to offer its employees a way out, as they were reportedly offered a bid to quit their jobs in exchange for roughly eight months of pay and benefits, the outlet reported. Trump administration officials told the outlet that the move is a signal to help those who oppose President Donald Trump’s agenda find other work.

In addition to the offer, the WSJ reported that an aide to CIA Director John Ratcliffe said the agency is freezing its hiring for job seekers with conditional offers, with some expected to be rescinded if the agents don’t have the background necessary for the agency’s new direction.

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“Director Ratcliffe is moving swiftly to ensure the CIA workforce is responsive to the Administration’s national security priorities. These moves are part of a holistic strategy to infuse the Agency with renewed energy, provide opportunities for rising leaders to emerge, and better position the CIA to deliver on its mission,” a CIA spokesperson told the Daily Caller News Foundation.

Ratcliffe was confirmed as the CIA’s new leader on Jan. 23, after the Senate approved him in a 74-25 vote. In his opening remarks during his confirmation process, Ratcliffe said he would adhere to the CIA’s core mission and focus on threats from the Chinese Communist Party.

“We will collect intelligence — especially human intelligence — in every corner of the globe, no matter how dark or difficult,” Ratcliffe said in his testimony. “We will produce insightful, objective, all-source analysis, never allowing political or personal biases to cloud our judgement or infect our products. We will conduct covert action at the direction of the president, going places no one else can go and doing things no one else can do.”

The move from the CIA comes a week after the U.S. Office of Personnel Management released an email on Jan. 28, showing that millions of federal employees were offered deferred compensation through Sept. 30, provided they submit their resignation notices by Feb. 6.

“If you choose to remain in your current position, we thank you for your renewed focus on serving the American people to the best of your abilities and look forward to working together as part of an improved federal workforce,” the email said.  “At this time, we cannot give you full assurance regarding the certainty of your position or agency but should your position be eliminated you will be treated with dignity and will be afforded the protections in place for such positions.”

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Liberals, globalists flip out after Trump orders USAID freeze

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From LifeSiteNews

By Stephen Kokx

How many Americans even knew what USAID was until this week? I’m guessing less than one percent. 

For the uninformed: USAID was started by President John F. Kennedy in 1961. Officially named the United States Agency for International Development, it spends over $40 billion in taxpayer dollars every year on various initiatives overseas; most of which are a complete waste of money, as Elon Musk and others have pointed out in recent days. See here:  

Whatever good intentions Kennedy may have had for the program, it has morphed into a slush fund for the Deep State to spread wokeism and to spark revolutions in countries that resist its tyrannical decrees. All of this is done in the name of “defending democracy” mind you. 

Under Joe Biden, USAID was run by World Economic Forum functionary Samantha Powers, who weaponized the agency to funnel boatloads of cash to Ukraine, among other futile projects.   

That fact was pointed out by Balázs Orbán, the son of Hungary’s Prime Minister Viktor Orbán, on X this week. 

 

A CIA front group that promotes LGBT ideology overseas 

President Trump has had enough of this. In his continued effort to drain the swamp, he signed an executive order empowering the newly created Department of Governmental Efficiency to dismantle USAID. 

“I love the concept, but they turned out to be radical left lunatics,” he said about the agency in the Oval Office on Monday.   

USAID’s website has already been shut down, and many of its liberal employees have been fired or barred from entering its headquarters in D.C., causing Democrats to hold a rally outside of it; because nothing shows the American people that you care about them more than defending a program designed to spend their money in foreign lands. Talk about being out of touch.  

 

 

Oddly enough, left-wing Jesuit priest James Martin also defended the agency by claiming that Jesus would support it as well. He was rightly called out by Archbishop Carlo Maria Viganò on X.  

 

Trump’s Secretary of State Marco Rubio has been named USAID’s interim director. He told the media this week that its rogue behavior has come to an end.  

“USAID has a history of ignoring [the national interest of the United States] and deciding that they’re a global charity. These are not donor dollars, these are taxpayer dollars,” he said. 

 

Other lawmakers and mainstream pundits have jumped on the bandwagon as well. 

“To my friends who are upset, call somebody who cares. You better get used to this. It’s USAID today, it’s gonna be Department of Education tomorrow,” GOP Senator John Kennedy said.  

 

“It’s not foreign aid — it’s a foreign slush fund,” Fox News’ Laura Ingraham has argued, as has Glenn Beck 

Trump’s “Rapid Response” X account joined in on the fun by highlighting some of the many ways the agency has wasted your and my money on LGBT and DEI causes abroad. 

 

Democrats melt down as Trump takes aim 

Liberals have been unable to control themselves. News that fewer tax dollars will be spent promoting their woke religion has left them apoplectic.  

This is a “coup,” thundered an emotional Joy Reid on MSNBC. 

Fellow MSNBC anchor Jen Psaki ludicrously claimed that the agency helps with “humanitarian” causes and “works to combat corruption.” 

Van Jones said on CNN the rolling back of funding is Trump telling the world to “go die.” 

Total nonsense.  

Like Freemasonry, USAID may feed the poor and help some impoverished people, but that is just cover to hide its true aim, which is to sow discord in countries that reject the NATO and U.S. empire.  

USAID has done this for decades, primarily by funding non-governmental organizations (and even extremists) that cause headaches for leaders who refuse to be slaves to the West. This has been the case in the nation of Georgia over the past several years. See here:  

 

 

CNN’s Scott Jennings, a Republican, made a comment about how USAID has been appropriated by liberals that really hits the nail on the head with what has gone wrong with it. 

“There is a difference between soft power and soft stupidity. So whether you’re funding DEI musicals in some country or transgender surgery somewhere or whatever, that is not what most Americans would say is an effective part of U.S. foreign policy.” 

USAID funded the Wuhan lab in China 

Perhaps the most attention-grabbing headline that has emerged with the USAID story is the revelation that the agency funneled $40 million to a lab in Wuhan, China, to study bat coronaviruses. 

“Records prove that Ben Hu — COVID’s likely ‘Patient Zero’ — is a Wuhan white coat funded directly by Fauci, NIT & USAID to conduct dangerous coronavirus gain of function experiments on animals!” watchdog group White Coat Waste Project posted on X today.  

Fauci has long denied being involved in such measures, but GOP Senator Ran Paul has never backed down from disputing his claims. He likewise challenged Samantha Powers about USAID money going to Wuhan as well.  

 

Last week, Paul announced his intention to continue digging into the matter, given Biden’s preemptive pardoning of Fauci.  

 

Today, Paul re-shared an X post from political activist Matt Kibbe that suggested he is on the cusp of blowing the whole thing wide open.  

“NIAID and USAID were money-laundering puppets for agencies prohibited from doing dangerous gain-of-function bioterrorism research. Now, Rand Paul and Elon Musk are poised to expose the whole scheme,” Kibbe said.  

 

USAID has misspent taxpayer money in countless other ways as well. Many of the downright bizarre programs are being shared on X. Here are a few of them:  

 

 

 

It should be noted that Rand Paul’s father, former Congressman Ron Paul, has been a critic of the Deep State for decades. In a recent video message, he called on the government to audit USAID and then shut it down. Elon Musk re-shared the video, calling it an “interesting” proposal.  

 

That’s good advice. I hope Elon and Trump will take it and follow through on it. Ending USAID is long overdue. 

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