New Paper Says Regulation Not Strangling the Economy

In a new paper, Alex Tabarrok and Nathan Goldschlag investigate whether heavyhanded government regulation has been responsible for a decline in dynamism in the American economy. They define dynamism about the way you’d expect: fewer startups, less job creation, aging firms, and weak productivity growth. Their approach is pretty simple: different sectors of the economy are regulated at different levels, so if regulation is at fault you’d expect to see a correlation between, say, regulation level and startup activity. But you don’t:

One paper doesn’t settle anything, of course, but this is basically an admission against interest since I doubt that Tabarrok wanted to come up with this answer. But he did. And as he notes, the paper got published in a good journal even though it’s a negative result. That’s good! Negative results should get published more often.

Needless to say, this doesn’t imply that regulation is good. It just says that regulation doesn’t seem to be responsible for reduced entrepreneurial activity or weak productivity growth. The answer lies somewhere else.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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