Home
/
RELIGION & LIBERTY ONLINE
/
Study: How Government Regulations Help or Hinder Cities
Study: How Government Regulations Help or Hinder Cities
May 24, 2025 2:14 AM

The revitalization of cities has e a significant focus among today’s Christians, with many flocking to urban centers filled with lofty goals and aspirations for change and transformation.

Last summer, James K.A. Smith expressed concern that such efforts may be overly romanticizing certain features (community!) to the detriment of others (government), concluding that “farmer’s market’s won’t rescue the city” but “good government will.” Chris Horst and I followed up to this with yet another qualifier, arguing that while both gardens and good governance are indeed important, so is business and entrepreneurship.

Families, churches, institutions, businesses, and governments all need to be in right relationship if cities are to flourish, and this means that Christians need to gain a clear understanding of what these relationships look like. How do the economies of love, creative service, wisdom, wonder, and order interact and intersect, and how do we orient our actions and attitudes accordingly?

For example, if a city’s economic future is driven, among other things, by entrepreneurialism,high levels of human capital,clustering of skilled workers and industries, or in the case of North Dakota’s Bakken region,bountiful natural resources, what role should the People of God play therein? What role do families play in those endeavors? What about munity associations, organizations, or businesses? How ought public policy to guide (or not guide) various efforts? Christians are called to be concerned with all of the above.

In a new study by the U.S. Chamber of Commerce Foundation—Regulatory Climate Index 2014: The Cost of Doing Business in America— we see a great example of the types of questions we ought to be asking. Focusing on 10 cities across America, the study investigates “the efficiency of local regulations that apply to small businesses,” demonstrating the full impact that the dirtier, more “boring” and mundane elements can have on whether and how individuals are empowered to invest, serve, and sacrifice within and for their cities. (The project was led by Michael Hendrix, who has contributed here on the blog in the past.)

Although many such studies have been done at the national or state level, few have focused on how regulatory environments vary from city to city, despite the variety that exists and the impact that such (dis)incentives have on economic behavior. As the study explains:

Cities thrive on innovation, expansion of small businesses, and entrepreneurship. Growth, new business formation, and free enterprise will do more for a city’s economy than any economic development policy can induce on its own. Economic achievement is tied to a fair and transparent legal infrastructure. The successes and failures of cities, small businesses, and entrepreneurs will depend heavily on rules and institutions that enable advancement and future prosperity….

…Regulations have an impact on firms, firm behavior, and overall economic growth on the macroeconomic level. Entrepreneurs and small businesses entering the market face the pliance burden” plicated, redundant procedures and inconsistent, high costs for entering the marketplace. Artificial entry costs deter entrepreneurship at the margin; thus, reform, through the reduction of entry costs, is predicted to affect entrepreneurship and job formation positively. Evidence shows that entrepreneurship is higher when fixed costs (e.g., entering the marketplace) are lower. Further, the impact of regulation on business entry signifies that such regulations and costs are associated with reduced job creation and reduced entry of new firms.

There is the question: How can local government enable advancement in the sphere of business and economics? This is what I mean by riding the overlap, examining the interaction, and participating at the intersection.

The study focuses on 5 key areas of regulation —(1) starting a business, (2) dealing with construction permits, (3) registering property, (4) paying taxes, and (5) enforcing contracts — assessing each based on the burden of procedures, cost, and time required.

Read the full reporthere, but the results are summarized below:

Although Dallas clearly tops the list, with New York at a depressing low, the authors ultimately conclude that “there are no clear-cut winners and losers,” and though such a study is helpful, these results but scratch the surface:

Each city performs well in certain areas and needs improvement in others. The ultimate goal of this research is to encourage cities to improve their regulatory environments in support of their local entrepreneurs…

…Local officials and policymakers can better understand the business conditions facing entrepreneurs and small firms by simply looking at the local laws, processes, and costs on the books for starting a business and other mon over the life cycle of a business. The success of their cities depends on improving existing regulatory processes, simplifying the business licensing procedures, and easing the barriers to entry for entrepreneurs who can further unleash the promise of free enterprise for American cities.

Further, whether they be local officials, policymakers, or otherwise, Christians ought to absorb these results in a similar manner. Discussing and thinking about the impact of these regulations isn’t going to be as alluring or romantic as building munity garden, planting a home church, or organizing a march for XYZ Awareness, but such regulations are nevertheless bound to alter the content of the very soil from which such seeds may sprout, for better or worse.

We ought not let regulations wholly dictate and determine the direction of our work and service, but we also need to heed the importance of such features in opening the doors to new possibilities that help unleash human potential and empower creative service wherever possible.

As the authors affirm, this study is but one small example of how we might begin to rethink and reevaluate the deeper relationships between institutions as they relate to our cities. Let it not be the end.

[product sku=”1440″]

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Gregg: Europe’s Not-So-Revolutionary Youth
The European Union’s finances are in a dismal state, and are requiring governments to revaluate the “welfare state.” Samuel Gregg articulates in his article appearing in The American Spectator, “Europe’s Not-So-Revolutionary Youth,” that a youth movement called les indignés or los indignados, depending on where you are, is resisting the reforms being proposed: This time, however, things are different. With barely-disguised reluctance, governments across Western Europe are proceeding with relatively minor reforms aimed at reducing the European welfare state’s costs....
Key to Economic Flourishing
It is nice to know that we here at Acton have friends in high places. This article at Catholic Exchange by George Weigel points out that Blessed John Paul II had some keen insights into what makes economic life flourish: “John Paul taught that what the Church proposes is not simply the free society, but the free and virtuous society. It takes a certain kind of people, possessed of certain virtues, to make free politics and free economics work toward...
Gregg: Social Contracts, Human Flourishing, and the Economy
In a new article on Public Discourse, Samuel Gregg explores social contract theory and how that may apply to the current budget battles: In very broad terms, social contract theory is a way of understanding the relationship between governments and the people. It holds that, having agreed upon the need for a government, individuals create a state on the basis of mutual promises. This permits the state to claim that its authority is based on a delegation of people’s rights...
Capitalist Anthropology
On RealClearMarkets, Mark Hunter dismantles “The End of Capitalism and the Wellsprings of Radical Hope,” by Eugene McCarraher in the Nation magazine. McCarraher’s article appears to be destined for the ash heap of Marxist utopian literature. But Hunter’s critique is valuable for his reminder that capitalism, free enterprise, the market economy — all the systems of mutually beneficial free exchange by whatever name — have actually been ingrained in human culture as far back as the ancient spice trade and...
The Poor as Neighbors: Option & Respect
R.R. Reno at First Things has written a moving meditation on the preferential option for the poor: “In the Gospel of Matthew we find Jesus warning us about how our lives will be judged. His words are pointed. We are to feed the hungry, e the stranger, clothe the naked, and visit the prisoner. For what we do to the poor and the destitute—“the least of these my brethren,” says Jesus—we do to the Lord himself. It’s a sobering warning,...
The Diabolic Comedy
Jeffery C. Pugh has landed every blogger’s dream: the book deal for a best-of collection of his musings. Devil’s Ink: Blog from the Basement Office is an answer to the question “What if Satan kept a blog?”—one of several (the opportunity to pun is apparently irresistible) all of which immediately parison with C.S. Lewis’s The Screwtape Letters. Pugh anticipates parison in his book’s preface, saying he offers “another way of looking at evil,” a modern way that reflects how the...
The Entrepreneurial Spirit: Judy Hill and High Cotton Ties
A few weeks ago I made a phone call to Judy Hill at High Cotton Ties simply because I had a strong feeling she had pelling witness to offer about entrepreneurship, vocation, and creativity. Picking up the phone was a wise decision. She agreed to an interview for readers of the PowerBlog. I had ordered a few bow ties from High Cotton Ties and was extremely impressed with the unique design and high quality. I had no idea of any...
Beginning of the End of Corn Ethanol?
Ethanol subsidies, once considered a sacred cow, are facing the possibility of being axed from the budget. The Senate cast a deciding vote, 73-27 in repealing the 45 cent per gallon subsidy to refiners for blending gasoline with ethanol, and the 54 cent per gallon tariff on imported ethanol. Cutting the ethanol subsidy and repealing the tariff still face an uphill battle as it must pass the house and get the signature of President Obama, who has vowed not to...
Vatican banker: Western economies risk ‘continual decline’
On NewsMax, Edward Pentin reports that “the president of the Vatican Bank has said that emerging economies may be the only countries experiencing economic growth over ing decades, while Western nations are crippled by lack of productivity, petitive labor markets, and aging populations.” Ettore Gotti Tedeschi said the “next decades risk seeing exclusively the growth of emerging countries, and not just because of their low cost of production but also due to their advanced technological level and capacity to create...
Valedictory: Sacrifice and Financial Success
Earlier this month, I spoke at mencement of Trinity School at Meadow View, a truly impressive private high school school in Falls Church, Va. Most impressive was the valedictory address given by the graduating senior Beau Lovdahl, who is on his way to Princeton in the fall. The story he relates here underscores the philosophy of the Acton Institute in many ways and I wanted to share it with PowerBlog readers. I hope you enjoy reading it. Beau Lovdahl Valedictory...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved