1.If the average U.S. worker produces $100,000 of output per year, what is the annual opportunity cost of the federal regulatory workforce (Table 27.1)?

TABLE 27.1 Number of Employment in Federal Employees Regulatory Agencies Agency (2018) The human and capital SOCIAL REGULATION resources the bureaucracy employs represent a real Consumer Safety and Health 43,371 opportunity cost. The 279,992 . Food and Drug Administration (FDA) people employed in 63 federal . Food Safety and Inspection Service, etc. agencies-and tens of thousands Homeland Security 148,152 more employed in state and . Transportation Security Administration (TSA) local bureaucracies-could be . Customs and Border Security producing other goods and . Immigration and Customs, etc. services. These and other costs Transportation 9,300 must be compared to the . Federal Aviation Administration (FAA) benefits of regulation. . Federal Motor Carriers Safety Administration . Federal Railroad Administration, etc. Workplace 10,231 . Occupational Safety and Health Administration (OSHA) . Mine Safety and Health Administration . Employment Standards Administration, etc. Environment 22,554 . Environmental Protection Agency (EPA) . Forest and Rangeland Research . Fish and Wildlife Service, etc. ECONOMIC REGULATION General Business 21,668 . Patent and Trademark Office . Securities and Exchange Commission (SEC) . Federal Trade Commission (FTC), etc. Finance and Banking 18,234 . Federal Reserve System . Federal Deposit Insurance Corporation (FDIC) Comptroller of the Currency, etc. Industry-Specific Regulation 6,482 Agricultural Marketing Service . Federal Communications Commission (FCC), etc. Total Regulatory Employment: 279,992 Source: Susan Dudley and Melinda Warren, Weldenbaum Center, Washington University, July, 2017