Here below a very good letter , published by the FT on 15 june 2018, about the influence on productivity by an excessive regulation:
REGULATION'S NEGATIVE EFFECT ON PRODUCTIVITY
Martin Wolf, in "waiting for a Productivity resurgence" (June 13) summarises some of the many thoughts expressed to explain the decline in productivity growth in recente years.One factor that has not received much publicity is the impact of regulation.
On most occasions where a new regulation is introduced, three things has happen that are negative to productivity.First, one or more persons need to be appointed to monitor and enforce the new regulation.In that role they do not contribute to the nations's output.These persons will for the most part, have previously performed productive tasks.Second, one or more persons need to be appointed sa compliance officers by those businesses whose activities are impacted by the new regulations.Again , in their new role, suche persons will not contribute to the nations's output.These persons will also in most cases have previously performed prductive tasks.Third, the fact of compliance with new regulation will, in most (although not all), cases result in a reduction in the productivity of each business impacted trough interference with optimum (in terms of efficiency) practice.
Many regulations are essential for safety (in one form or another).Others are required to prevent fraud, abuse and (undeniably) improper practices..In a few cases, a new regulation will stimulate a revision in practice which will increase productivity.However, it needs to be recognised that OVERALL there is a trade-off, in the negative impact on national productivity resulting from increased regulation.
PETER FERGUSSON, Guildford , Surrey, UK.
About the subject above you can read too ;"The italian challenge to eurozone" by Martin Wolf, in FT 19 june2018 and LABOUR PRODUCTIVITY in the FT, on the first page , on 28 june 2018, about the value added per person at purchasing power parity , $ 000s.
