Is the Largest Cost of Federal Regulation Not Measured? Insights from the (Growing) Wells Fargo Bank Scandal

A widely-cited study by W. Mark Crain and Nicole V. Crain estimates the cost of complying with U.S. government regulations at a staggering $2 trillion per year, an amount equal to 12 percent of gross domestic product. Annual compliance costs average about $10,000 per employee. Businesses in the service sector shoulder the biggest burden among all sectors, with compliance costs approaching $460 billion annually.
Despite the enormous compliance costs associated with federal regulations, it is possible that the largest regulatory cost of all might be unmeasured. I call this cost the “misplaced trust” cost, and it is illustrated by the recent

Read more at The Independent Institute