Even legitimate business regulations stifle creativity and innovation, preventing new businesses from forming or existing ones from expanding. Worse, anti-competitive business regulations are a way for established companies to increase market share and profits under the pretext of protecting health and safety. These regulations favor politically-connected industry insiders and impose higher costs for new entrepreneurs.
IJ’s model Business Regulation Relief Act directly addresses the widespread problem of anti-competitive regulations and will ultimately result in an increase in economic liberty—the right to pursue an occupation or operate a business free from unreasonable government regulation—across the nation.
First, the model lets legislators enact new entry restrictions or operational regulations only when there is a real concern for public health and safety. Second, the model puts the burden on the government to prove, when challenged in court, that the regulation protects public health and safety in the least restrictive way.
By enacting IJ’s model Business Regulation Relief Act, state legislators will reduce anticompetitive regulations, help stimulate economic activity and job creation, and help give consumers more choices at lower prices.
This model complements IJ’s model Occupational Licensing and Job Creation Actand offers to state legislators another way to increase economic liberty.