New data shows that federal regulations have led to more people living in poverty, greater income inequality, fewer businesses, less jobs, and higher prices for consumers in Mississippi.
According to the research from the Mercatus Center at George Mason University, Mississippi has experienced the following regressive effects:
86,135 more people living in poverty
Using the federal regulation and state enterprise (FRASE) index, which “represents the degree of impact federal regulations have on a state’s economy relative to federal regulations’ impact on the national economy,” research shows that a 10 percent increase in the effective federal regulatory burden upon a state is associated with a 2.5 percent increase in the poverty rate.
From 1997 through 2015, regulatory burden in Mississippi increased by 71 percent. That is associated with an increase in the poverty rate of 17.75 percent. In 2018, Mississippi’s poverty rate stood at 19.8 percent. Without the regulatory increase, it would have been 16.82 percent.
That’s the equivalent of 86,135 fewer people living in poverty.
3.6 percent higher income inequality
Using the FARSE index, a 10 percent increase in the regulatory burden is associated with a 0.5 percent increase in the state’s Gini coefficient, the most commonly used measure of income inequality.
Mississippi’s increasing regulatory burden represents a 3.6 percent increase in the level of income inequality.
904 jobs lost annually and 68 fewer businesses annually
Research from the Mercatus Center has found that a 10 percent increase in a state’s regulatory burden is associated with a 0.42 percent reduction in the number of small businesses and 0.55 percent decrease in small business employment.
In 2017, Mississippi had 42,676 small businesses, employing 437,242 workers. Between 1999 and 2015, industry-level federal regulations increase by 3.78 percent each year. This translates to a loss of 68 small businesses and 904 jobs each year. During that time period, it represents about 15,000 jobs lost.
7.35 percent higher prices
Research finds that a 10 percent increase in federal regulations is associated with a 0.9 percent increase in consumer prices. This translates into a 7.35 percent increase in consumer prices from 1999 through 2015.
As the data
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