Costly Mistakes: How Bad Policies Raise the Cost of Living
Government policy mistakes significantly raise the prices of consumer goods. The 12 costly policy mistakes discussed in this paper add $4,440 a year to the annual expenses of the average American family. Most policy mistakes raise costs by limiting supply. Policymakers can lower the cost of living by removing unnecessary regulations and licensure requirements, streamlining bureaucracy, and ending protections that have been granted to favored industries. Citizens and local legislators need not wait for Washington to ease the cost of living: The most costly policy mistakes can be fixed at the state and local levels.