Disadvantages of Administrative Regulations - Explained
The downsides of this regulatory structure
Written by J. Mance Gordon
Updated at April 21st, 2024
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What are the disadvantages of administrative agencies and regulations?
The disadvantages of relying on the agencies in the rule-making and adjudicative process, include:
- Increased Bureaucracy
- Increased Time Delays
- Complicated Processes
- Large Body of Regulations to Understand
What are the disadvantages of administrative agencies and regulations?
While administrative agencies provide the above-stated benefits, there are numerous disadvantages to relying on the agencies in the rule-making and adjudicative process.
Foremost among the disadvantages, administrative agencies are famous for adding a degree of bureaucracy to regulated activities.
Basically, there are added procedures, such as regulatory filings, inspections, continued record keeping, and reporting, etc.
Complying with additional regulations and procedures raises the cost of doing business.
These higher costs are born by the government, businesses, and consumers.
Further, complying with regulatory burdens can slow the process; and, in business, time is often as valuable as money.
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