The U.S. regulatory system has grown increasingly expansive, intrusive and complex in recent decades, its tax system has become ridiculously complicated, and its economic policies have become less predictable. I present several pieces of evidence related to these developments and discuss some of their costs. I then sketch some ideas to arrest or reverse these developments. In this regard, I stress the importance of simplicity in regulatory design, the advantages of policy designs that foster predictable regulatory responses, and the need for new institutions to restrain ineffective, excessively burdensome and capricious regulations.

More Research From These Scholars

BFI Working Paper Mar 25, 2019

Policy News and Stock Market Volatility

Scott R. Baker, Nicholas Bloom, Steven J. Davis, Kyle Kost
Topics:  Financial Markets, Fiscal Studies
BFI Working Paper Oct 7, 2019

The Economic Effects of Private Equity Buyouts

Steven J. Davis, John Haltiwanger, Kyle Handley, Ben Lipsius, Josh Lerner, Javier Miranda
BFI Working Paper Oct 16, 2020

Stock Prices, Lockdowns, and Economic Activity in the Time of Coronavirus

Steven J. Davis, Dingqian Liu, Xuguang Simon Sheng
Topics:  COVID-19, Financial Markets