Report: Deregulation Drives Dramatic Economic Turnaround, Inspires Business Confidence
A new attitude is emerging among America’s economic leaders, causing increased investments in factories, equipment and manufacturing plants, while simultaneously spurring job creation and increased wages, The New York Times reported Tuesday.
This newfound confidence in the economy is aided by the tax cuts signed into law by President Donald Trump, but it’s the deregulation carried out by the administration which has restored confidence to the business community, according to TheNYT.
American Action Forum published an analysis of deregulation under President Donald Trump, and found that his administration’s polices have saved the government $378 million in total costs. The cuts served as an assurance to businesses that there would be no new burdensome regulations from the federal government hindering their productivity in the near future.
There is “little historical evidence” tying regulation levels to growth, according to TheNYT, and regulatory proponents are fearful that the new policies will hurt businesses in the long run. They think regulation saves companies from themselves by preventing costly mistakes which would damage them “financially and reputationally.”
Brett Hartl, the government affairs director at the Center for Biological Diversity, told TheNYT that the Trump administration would be wise to play small ball and make it harder for the federal government’s bureaucracy to carry out the will of the Obama administration.
“It’s not going to be sexy things like ‘We’re killing the Clean Power Plan,'” Hartl said. “But you can make it systematically harder for an agency to do the right thing.”
The results are already beginning to show as news of the tax cuts have improved the economic outlook and caused economists to revise their growth forecasts to trend upward for 2017 and 2018, TheNYT reports.
Trump’s administration has done away with several major rules approved at the end of the Obama administration, including a regulation on reducing mining debris in streams, a requirement that broadband providers obtain permission from customers to collect online data and a ban on allowing plastic bottles in national parks, according to TheNYT.
The article states confidence among businesses have climbed to record highs during Trump’s first year in office, and “the most important reason for their increased optimism is the simple fact that the domestic economy continues to expand, with few clouds on the horizon.”
The chairman of the White House Council of Economic Advisers, Kevin Hassett, said during an interview that the administration’s approach to deregulation has been a main source of reassurance for the business community and helped create more economic growth in 2017.
“Our view is, the ‘no new regulations’ piece has to be more powerful than we thought,” Hassett concluded.
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