The Impact of Federal Regulation on Wyoming
Federal regulation is applicable in the same way in all 50 states. Each state’s economy, however, includes a unique mix of industries, so federal policies that target specific sectors of the economy will affect states in different ways. Federal regulations can, by design, target some industries more than others. For example, the Dodd-Frank Wall Street Financial Reform Act of 2010 directed federal regulatory agencies to create approximately 400 new regulations targeting the financial services sector. These new regulations will have a national effect because financial services matter in all states, but they will be felt more in New York than in South Carolina, simply because of the relative importance of the financial services industry in the former state.
For 2013, Wyoming scored a 1.59 on the FRASE index. By design, the FRASE index for the United States overall in any year will equal 1, so a score of 1.59 indicates that the impact of federal regulation on Wyoming’s industries was almost 60 percent higher than the impact on the nation overall.
So why is the impact of federal regulation higher for Wyoming than for the country overall? The answer lies in the particular industries that make up the state’s economy and how regulated those industries are the two most important industries in Wyoming are mining and oil and gas extraction. The mining industry contributes about 32 times as much to Wyoming’s economy as to the national private sector, while the oil and gas extraction industry contributes more than nine times as much. Both of these industries are highly regulated.