AEI Scholar Blames Dodd-Frank for Slow Economic Recovery

In an American Enterprise Institute ("AEI") article titled "The Slow Economic Recovery Explained," senior fellow Peter J. Wallison draws a connection between the economy of the last six years and provisions of the Dodd-Frank Act.

Mr. Wallison identified various studies indicating that small banks and businesses suffered as a result of costs imposed by the Dodd-Frank Act. He explained that such costs burden small firms and prevent them from obtaining access to the credit they need to grow. He argued that bigger businesses are able to reap the benefits of credit offered through the capital markets. Accordingly, bigger businesses have been able to recover from the economic downfall, while small businesses struggle to make a comeback. This two-speed economy, which does not follow historical growth patterns, "is directly related to Dodd-Frank" he argued.