Comment by ETH_start

Since the 1970s, some industries were deregulated, but overall legal and compliance complexity has still grown over time, according to all studies that I'm aware of on the subject of the regulatory burden.

The studies indicate that a few large early regulations aimed at clear externalities — like major air pollution — delivered substantial benefits on the balance, but many of the smaller restrictions added afterward, especially as they accumulated, mostly generated paperwork (huge compliance industries) and fixed costs (that made smaller firms less competitive) with diminishing returns.

The sensible goal should be to massively reduce the regulatory thicket, while keeping the small set of restrictions that have clear, major benefits and are straightforward to enforce, and replacing the rest with simpler standards or pricing mechanisms that prevent negative externalizations without dragging down productivity through top-down micromanagement of the economy that regiments the actions of private citizens.