Affordability Concerns for Americans

Affordability is becoming a significant challenge for many Americans today. With inflation and increased living costs continuing to strain wages, the traditional pillars of the American Dream—like homeownership, entrepreneurship, and a stable retirement—seem increasingly unattainable.

In light of these issues, some advocate for greater government intervention. On the other hand, President Trump argues for a different approach: a reduction in government involvement.

Success cannot be attained merely by removing regulations. Regulators should shift their view of entrepreneurs from being issues to be managed to being partners in growth.

Shortly after taking office, Trump signed two important executive orders designed to alleviate financial burdens for both business owners and taxpayers. The initiatives aim at promoting wealth through deregulation, one known as the Unleashing wealth through deregulation and the other referred to as the DOGE Initiative. The main idea was straightforward: for each new federal regulation implemented, 10 older regulations would need to be removed.

A year later, tangible results have emerged.

During this time, I served as a community advocate in the Small Business Administration’s Advocacy Bureau, an office established back in 1976 but invigorated under the latest administration.

My team and I engaged with small business owners—many of whom are still feeling the impact of the economic fallout from the pandemic—to identify how the federal government could be more of a partner than a hurdle.

We connected with over 12,000 companies nationwide.

The full report is publicly accessible, revealing some crucial insights from the past year:

• We identified over 300 regulatory issues needing attention from federal regulators.
• We influenced 23 federal regulatory changes pivotal for millions of businesses.
• Small businesses collectively saved close to $110 billion in regulatory costs that were unnecessary.

This last figure is particularly telling; it hints at a much larger problem. Federal regulations drain the U.S. economy by an estimated $3 trillion annually, roughly 12% of GDP. The burden disproportionately impacts small and medium-sized businesses, which lack the resources to handle the legal and compliance costs larger firms can more easily absorb. The Code of Federal Regulations has grown excessively, now exceeding 180,000 pages.

For small businesses, this type of regulation isn’t just a statistic; it’s a direct threat.

While large corporations can afford in-house legal teams and compliance officers, smaller entities like mom-and-pop shops or startups operating out of a garage face daunting challenges. Overregulation skews the landscape in favor of larger players, even though those smaller businesses are often the best at generating jobs and fueling local economies.

For too long, federal rulemaking has neglected the needs of small business owners. We often hear that big companies are “too big to fail,” but today many small businesses grapple with an opposite dilemma: being too small to thrive.

One effective measure we’ve implemented is the SBA’s red tape hotline—1-800-827-5722—allowing small business owners to directly communicate with federal officials about their regulatory challenges and propose reforms. Through this hotline, we’ve heard from countless individuals we otherwise wouldn’t have reached.

Our overarching aim is to enhance the regulatory climate for all business owners. For small businesses, the cost of hiring a lawyer to navigate a claim can be a substantial burden.

One particularly striking case involved the SBA assisting a toy company in Mississippi with Customs and Border Protection, enabling them to clear a shipment just in time for December—a move that literally saved their holiday season.

The philosophy guiding this effort aligns with what I experienced as the mayor of Riverton, Utah, where I completed my second term not long ago. Riverton has thrived by keeping taxes, fees, and regulations balanced enough to support rather than hinder business growth. During my administration, the community saw an increase in businesses, jobs, and sales tax revenue—an approach that I’m glad to see echoed at the national level.

However, this is just the beginning.

It’s essential to recognize that merely eliminating regulations won’t ensure success. Regulators need to start viewing entrepreneurs as collaborators in growth. This shift has the potential to do more than just cut costs; it could enable us to truly embrace the American Dream once again.