A Rational Perspective on the Importance of Reevaluating A Decade of Overregulation in the U.S.

Abstract

Government regulations are essential tools for ensuring that industry is accountable and acting responsibly. A company committed to a balanced risk framework would agree that reasonable regulatory tollgates are also necessary for guiding innovation. Innovation impacts micro and macroeconomics. Schumpeter distinguished innovation as, “[…] the commercially successful application of an idea, from invention, to the initial development of a new idea, and from diffusion, to the widespread adoption of the innovation” (Ashford and Heaton, 1981, p. 110 as cited by Steward, 2010). Burdensome regulations cause corporations to “[…] divert time and money from innovation activities to compliance efforts” (Stewart, 2010).