ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Monday, November 30, 2015

12 Policy Reforms Could Save An Average Household $4,440 a Year

by Dr. Salim Furth: Economic freedom is a matter of principle, but it’s also a boon to family budgets.
Just 12 economic policy reforms would save the average household $4,440 a year. Opening up markets to more competition, treating outsiders and insiders equally, and squeezing out bureaucratic delays could push prices down enough to give American families some budgetary breathing room.

Nor do Americans need to wait for Washington: States and municipalities can implement some of the biggest cost-saving reforms.

Dozens of studies have looked at specific ways that prices are driven up by policy mistakes. I collected the evidence on 12 policy mistakes and found that the combined effect of free-market reforms would be a huge benefit to consumers: $546 billion a year, more than all the rent paid by Americans in a year. The 12 policy mistakes—and paths to reform—are detailed below.
Local reforms
The characteristic vice of local government is to protect the status quo when it ought to embrace the organic changes that consumers seek.

The most costly policy mistake of all, overregulation of land use, is a local issue. Americans once had the right to build what the market wanted, and the result was soaring skyscrapers, elegant mansions, affordable homes near jobs, welcoming town squares, and secret mountain retreats.

Zoning laws, nosy neighbors, parking minimums, height restrictions, and minimum lot sizes have been choking out the organic growth of cities and suburbs across the country. I found that if the typical coastal city adopted milder land use restrictions, rent would fall 10 percent, and home prices would fall 20 percent. (Incidentally, that does not necessarily mean that current homeowners would lose money: lower regulation has been found to increase the price of land and decrease the price of buildings.) In all, adopting mild land use restrictions could save Americans $209 billion per year, with the benefits concentrated among those who currently pay the most for housing.

State reforms
The characteristic vice of state governments is to write laws so that workers and businesses have to ask permission.

Occupational licensure is particularly harmful, costing the average household $1,033 per year. Workers in professions as disconnected from public safety as teaching school or applying cosmetics now have to be licensed by the state for no good reason. One proposal to reform occupational licensure is Lincoln Labs’ “Right to Work 2.0,” which would force regulators to defend labor regulations on their merits.

Auto dealership monopolies are established by law in every state. Anyone with a storefront can sell bicycles, but if you want to sell cars, you have to get permission from the state government. That also means that manufacturers can’t sell directly to consumers online.

In Brazil, General Motors tried an online sales model, and the result was a 6-percent drop in prices. Scholars estimate that U.S. consumers would get a similar benefit, which works out to $1,950 in savings on a new car. Most people don’t buy a car every year, so the savings works out to $288 per household per year.

Renewable energy mandates have been established by many states, benefiting favored energy industries, harming others, and raising the price of electricity. If states repealed their mandates—and let all types of energy compete on an even playing field—consumers would soon save $108 per household nationally. In the states that have the most restrictive mandates, there would be even larger benefits.

Medical tort reform, such as limiting the size of payouts in medical malpractice cases, could make health care significantly cheaper. Washington is doing plenty to raise the cost of care, but states can lower health care costs by $82 per household with tort reforms.
Federal reforms
The characteristic vice of the federal government is cronyism. Lots of well-connected insiders have figured out that if you take a few dollars from everyone in America, you will be very rich, and the victims might not notice. Below are just a few of Washington’s reverse Robin Hood schemes.

Corporate Average Fuel Efficiency (CAFE) standards are the way that Rube Goldberg would have regulated fuel efficiency. When the Obama administration rewrote the CAFE standards in 2009, engineers and economists predicted that consumers would lose at least $3,800 per new car. Six years later, the price of cars is $4,500 above its previous trend. Repealing the CAFE standards would save the average household $448 per year.

The ethanol mandate requires that refiners use corn for gasoline. Corn isn’t very good at being gasoline. Just letting corn be itself would lower the price of gas by 19 cents per gallon and lower food prices by about one percent, for an annual household savings of $255.

Corporate tax complexity forces corporations large and small to employ armies of accountants and lawyers just to comply with the tax code (and to seek out its many loopholes). Commonsense corporate tax reform would lower their costs. Even if only half the gains were passed on to consumers, the average household could save $230 per year.

Repealing the crude oil export restriction would also lower the price of gas by 12 cents per gallon. That’s just a minor side benefit of repeal, which would also create jobs and increase incomes as well. But the average household will welcome an extra $227 per year.

The Sugar Program and Federal Milk Marketing Orders transfer money from consumers to wealthy landowners by raising the prices of staple foods. A gallon of milk would be 49 cents cheaper with a competitive milk market, and a pound of sugar would be 28 cents cheaper. Consumers would save 16 cents a pound on butter and four cents on a box of breakfast cereal. Each reform would save the average household $29 per year.

Cement production regulation is just one example of the many ways that the Environmental Protection Agency imposes high costs on consumers. Regulation has made it much more expensive to build a cement factory, allowing the existing plants to behave like monopolies. They pass on the costs of regulation to consumers and then some. Going back to the 1990 level of regulation in the cement industry would save the average household $14 a year. The broader lesson is that environmental regulations should be subjected to rigorous cost-benefit analysis.

Twelve steps toward economic freedom and away from cronyism and overregulation would save the average American household $4,440. Congress can make a difference, but so can state capitols and town halls around the country.

There are benefits to economic freedom that are not discussed in this op-ed: more jobs, higher wages, and less volatility in the housing market, for instance. More deeply, economic freedom is a civic virtue in itself—lower prices and greater prosperity are the fruit of individual liberty, not its justification.
Salim Furth, Ph.D., (@salimfurth) researches and explains how public policy affects economic growth as a research fellow in macroeconomics at The Heritage Foundation’s Center for Data Analysis. His economic research has covered fiscal policy, international economics, labor market trends, and economic mobility.

Tags: 12 Policy Reforms, could save, household, $4,440 a Year, Salim Furth, Heritage Foundation To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 1:44 PM - Post Link


Post a Comment

<< Home

national debt
Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You Receive One Email Each Morning
With Prior Days Articles / Toons / More

Also, Join us at:

Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru
Married 48yr #Conservative #Constitution #NRALife #GunRights #USAF 22yr #military #veteran #Christian #CCOT #ProLife #TEAParty #GOP #TCOT #SGP #schoolchoice

Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
Sunshine Review

Facebook Accts - Dr. Bill Smith
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Baxter County Republicans, AR
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire
Republican Liberty Caucus of Arkansas
The Gold Standard
Twin Lakes Republican Women
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Let's Mine AR Lignite NOW!
Personhood Initiative
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.


Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
AR Republican Assembly
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Baxter Co. GOP Assembly
Baxter County Republicans
Benton Co. GOP Assembly
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
American Committment
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Curtis Coleman Institute for Constitutional Policy
Declaration of Am. Renewal
Eagle Forum
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist Today
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts

Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer

Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to netvibes

Add to Bitty Brouser

Add to The Free Dictionary

Powered by Blogger

Politics Blogs
Politics blog

  • How To Exchange Links!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting the beliefs associated with the ARRA, this blog/site is not controlled by nor funded by the ARRA. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2016 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.