Deregulation Is the Only Hope For Big Government

Although deregulation is not often supported by those who support big government, it is actually the most realistic path forward for those who support an expensive state. Decades of deficits and poor management have led to a massive national debt and ever-growing interest payments. The interest payment is now similar to traditionally large expenses like defense and healthcare. In order to move from deficit to surplus, chip away at the interest payment, and continue to grow, deregulation has never been more important.  Deregulation is the most effective way to increase tax revenues. When your country’s industries are stagnant and heavily regulated, there is less tax revenue than in a country with a less significant regulatory burden. Regulation will also lead to the breakthroughs in business and technology that can allow the government to do more with less as cutting budgets becomes necessary. Finally, a free market allows the people to adjust to the shocks of a late stage government far more fluidly than a more heavily regulated option. 

Tax revenue is the second most important part of government financial management. Spending is the most important part as there are fewer variable external factors that can influence it. The government has control of spending in a way that it does not have over revenue. However, revenue is derived from two factors: the economic conditions and the government’s means of extracting resources. A heavier burden of regulation makes it difficult for businesses to create new things and disincentivizes them from trying. While regulations are often meant to help, they primarily blunt business progress. In a free nation with clearly delineated property rights and a safe environment, business can flourish and people can live freely. Although some level of regulation is needed, America and all developed countries are far more regulated than would be optimal. If the US government was to reduce regulations and create a simple and transparent system, the people would be able to create far more wealth and make more taxable income. A tax plan will never be enough to help a government escape from a dragging economy. However, with a strong and free economy, raising taxes has more power to diminish a deficit.…