Ep. 181 - Deregulation, AI, and the Hidden Cost of Regulation w/ Patrick McLaughlin

Regulation shapes nearly every part of the U.S. economy — but what happens when decades of rules pile up without being revisited? On this episode of the Federal Newswire Lunch Hour Podcast, host Andrew Langer sits down with Patrick McLaughlin, Research Fellow at the Hoover Institution, to examine how regulation, deregulation, and emerging technologies like AI are reshaping the relationship between government and the economy. McLaughlin breaks down the current push to roll back existing regulations and explains why focusing on “old rules” may matter more than stopping new ones. He also outlines how regulatory accumulation impacts productivity, investment, and long-term economic growth — and why even modest changes today can compound into significant economic gains over time. The conversation then shifts to structural issues inside the regulatory system itself, including whether the Administrative Procedure Act is overdue for reform and how recent legal shifts following the end of Chevron deference could reshape the balance of power between Congress and federal agencies. The episode also explores: • Whether AI will make regulatory compliance easier — and what that means for future regulation • The risks of “frictionless regulation” and the growth of the administrative state • Why old regulations should be regularly reexamined instead of endlessly accumulating • The real-world economic impact of regulatory buildup on productivity and growth • How deregulation can create compounding long-term economic gains The discussion also takes a close look at the proposed Railway Safety Act, questioning whether new regulations actually improve safety or simply add cost and complexity. McLaughlin explains how certain mandates — like minimum crew size requirements — may not deliver the intended safety benefits and could instead limit innovation, increase costs, and reduce efficiency across the transportation sector. Drawing on new research, he connects transportation policy to the broader economy, showing how regulatory decisions in one sector can ripple outward — affecting prices, productivity, and economic growth nationwide. This is a data-driven, big-picture conversation about regulation, innovation, and the long-term consequences of policy decisions that often go unquestioned. 00:00 — Intro and Patrick McLaughlin joins the show 01:13 — REINS Act and Trump-era deregulation overview 03:09 — Cutting old regulations vs stopping new ones 04:47 — Are deregulation savings real? 06:23 — How regulation impacts productivity and economic growth 07:43 — AI and the future of regulatory compliance 10:01 — Does easier compliance lead to more regulation? 11:10 — Why process reform matters more than friction 12:26 — Should the Administrative Procedure Act be updated? 14:39 — Reexamining old regulations and regulatory buildup 16:40 — Post-Chevron world and vague statutory authority 19:02 — Scope of regulatory overreach (37% estimate) 23:53 — The Railway Safety Act explained 25:00 — Why more regulation doesn’t always improve safety 27:27 — Deregulation and rail safety improvements since 1980 29:14 — Who actually benefits from new regulation? 30:54 — Innovation, transportation, and economic growth 33:05 — How regulation increases costs and reduces output 37:11 — Unintended consequences of regulation 40:39 — How Patrick McLaughlin got into regulatory economics 43:19 — Closing thoughts and where to follow Patrick