Part of the issue is each layer of new regulation that gets added makes it all the harder to start and maintain a business. I’m following a story not far from me where State regulators want developers that had been permitted 5 years ago but didn’t build due to the downturn in the economy to go through the permitting process again now that they are ready to build, but with slight changes to the plan. At issue is the State changed their regs in the ensuing 5 years to discourage what they see as sprawl. The regulators are seizing upon the fact that they made slight changes to the plans. This new development will have the same footprint as the original plan and will have the same road access. More importantly it will be wedged between an existing large shopping plaza on one side, a large car dealership on the other side, and across the road from a mall. Filling in that spot hardly constitutes adding to sprawl but the anti-development regulators are now forcing the developers to spend a ton of money on the legal battle. Nobody will ever want to use that lot for anything other than commercial development.
It is death by a thousand cuts, and the do-gooders behind this regulatory onslaught think they are somehow preserving the environment and building a better society. Instead they are stifling the economy.