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Politicians claim regulation hurts small businesses. When you look at real-world data, the truth is more complicated

Michael Simkovic & Ben Zhang of the University of Southern CaliforniaSeptember 9, 2024January 8, 2025
small business
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  • Business

Last week, Kamala Harris released a plan to support small businesses by increasing tax credits and “cutting red tape.” Donald Trump responded by saying he would slash regulation and vowing to eliminate 10 government regulations for every new one enacted.

Politicians like Harris and Trump often lament that small businesses are victims of overly burdensome government regulations. However, our research found that medium-sized businesses are actually hit hardest by the costs of regulatory compliance. Furthermore, agencies rarely assess whether the rules they create achieve their intended goals ex-post—or the real cost of regulation to businesses and the economy.

Read the full article at Fortune.

This article was produced by Footnote in partnership with the University of Southern California.

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