Excessive Regulations Have Stalled Europes Economy

Germany and the western European nations are perfect examples of how the United State’s economy would function if the Democrats are put back in power. Several observers describe Germany’s economic decline as a slow industrial suicide. What caused the collapse of the economic engine that powered a strong German economy for centuries? Good intentions coupled with a naive understanding of how strong economies prosper led to the sad demise of what was once a powerhouse.

According to the German Association of the Automotive Industry (VDA), Germany has lost 100,000 auto-related jobs since 2019. According to VDA this trend will continue with another 125,000 jobs being lost over the next few years.

Just like in California, Germany allowed the environmentalists to control their industrial base. Germany, just like California, decided to ban combustion engines after 2035. German leftists and California Democrats were so naive that they believed they could save the world by forcing everyone to switch to electric vehicles.

The bureaucrats had no idea that the rules they enacted would impose such high costs on businesses and on the poorest of their citizens. These clueless bureaucrats added more costs by putting burdensome regulations on the production of automobile fuel. These regulations caused the price of fuel in Germany and California to spike which added more costs to businesses that were trying to compete in the world markets.

These same regulations on fuel production and enormous employment regulations made the costs of German  automobiles much higher and the demand for these cars started dropping. Eventually, the manufacturers are forced to lay off workers and the vicious cycle continues.

This constant layer upon layer of regulations from bureaucrats in Europe has slammed the brakes on economic growth. Mario Draghi, a former Prime Minister of Italy and former president of the European Central Bank, wrote a stinging criticism of the European economy. Draghi pointed out that Europe’s economy is anemic at best because of the burdens of regulations. Draghi urged Europe to DEREGULATE AND FOCUS ON GROWTH!

Excessive regulations often start with good intentions. The good intentions matter little when the regulations stymie growth, increase the cost of living and eliminate jobs. The Gross Domestic Product (GDP) is a tool that measures the size and health of an economy. The GDP of Europe has slowed to 1% because of the growth of regulations. 

America’s GDP is much higher than Europe and it grows when bureaucrats are not allowed to throttle the economy through excessive regulations. Each year that our GDP is higher than Europe’s we increase our standard of living over that in Europe.

When Democrats gain political power, they put college professors in charge of the economy. These leftist professors are advocates for more regulations because they have no real world experience. The result of these regulations is an economy that falters. The Democrats respond by giving more charity to people which makes them more dependent on the government.

President Trump has an understanding of the enormous benefit that Americans gain from an economy that grows. That growth is powered by a reduction in regulations. This growth creates more private sector jobs which puts more money into the pockets of American workers.