Regulation doesn’t prevent financial crises—a fact that the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act conveniently ignored.
Born from the myth that deregulated markets caused the 2008 crisis, Dodd-Frank inserts the federal government into virtually all components of the financial sector. The legislation polices everything from derivatives markets to payday lending, and it has (so far) burdened the U.S. economy with thousands of pages of rules.
Unsurprisingly, these overbearing regulations stifle economic growth. Meanwhile, the causes of the last crisis have not been addressed and the number of too big to fail firms has increased. After witnessing sluggish economic recovery and alarming trends towards overregulation, experts have come together to present the case against Dodd-Frank.