The U.S. economy has recovered steadily since the 2007-2008 financial crisis, but the slow rate of economic growth has been, and continues to be, concerning to workers, families, and policymakers.1 Finding ways to bolster economic growth in a sustainable and inclusive manner has been, at least rhetorically, at the top of the legislative and regulatory agenda. Policymakers have targeted financial regulation as a potential mechanism for spurring economic growth. Financial regulation—as opposed to public investments or other aspects of fiscal policy—may seem like an unusual place to look for ways to improve the health and overall growth prospects of the U.S. economy. But in fact, financial regulation is essential for economic growth.
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