The Trump administration is doubling down on deregulation: Where the previous Trump administration removed five regulations for every new one, the target is now 10.
Our research shows that cutting regulations will increase gross domestic product, expand investment, and cut inflation without raising taxes. We used RegData 5.0, a text-based database that tracks regulatory intensity in the Federal Register, to analyze the relationship between regulation and key economic indicators.
Simply freezing new regulations for a decade would increase GDP by 1.8%—comparable to the economic gains from a major tax cut. Inflation would also ease, with the GDP deflator—a key measure of price levels—falling by 5.7% over the same period. That translates into a reduction in annual inflation of 0.6 percentage points, which would help the Fed get rid of stubbornly high inflation.
