The Trump Effect: Business, Anticipating Less Regulation, Loosens Purse Strings

New York Times ^ | January 1, 2018 | BINYAMIN APPELBAUM and JIM TANKERSLEY

[reaganaut1]

WASHINGTON — A wave of optimism has swept over American business leaders, and it is beginning to translate into the sort of investment in new plants, equipment and factory upgrades that bolsters economic growth, spurs job creation — and may finally raise wages significantly.

While business leaders are eager for the tax cuts that take effect this year, the newfound confidence was initially inspired by the Trump administration’s regulatory pullback, not so much because deregulation is saving companies money but because the administration has instilled a faith in business executives that new regulations are not coming.

“It’s an overall sense that you’re not going to face any new regulatory fights,” said Granger MacDonald, a home builder in Kerrville, Tex. “We’re not spending more, which is the main thing. We’re not seeing any savings, but we’re not seeing any increases.”

The applause from top executives has been largely reserved for the administration’s economic policy agenda. Many chief executives have been publicly critical of President Trump’s approach to social and cultural issues, including his response to a white nationalist march over the summer in Charlottesville, Va., that turned deadly and his decision to withdraw from the Paris climate accord. Two of the business advisory councils that Mr. Trump assembled in the nascent days of his presidency disbanded after executives grew concerned about his public remarks on the violence in Charlottesville.

There is little historical evidence tying regulation levels to growth. Regulatory proponents say, in fact, that those rules can have positive economic effects in the long run, saving companies from violations that could cost them both financially and reputationally.

[Paradox]

blink blink.... are you sure this wasnt from the NY Post?

[NonValueAdded]

They had to throw in that 4th paragraph, didn’t they. /rhetorical

[aquila48]

“They had to throw in that 4th paragraph, didn’t they.”

Until that I was about to open the window to look for flying pigs.

[imardmd1]

Raised wages = raised costs = raised prices = inflation

fix the plants, increase productivity, improve quality, decrease prices, stabilize wages = reptriate market share

Stop raising wages! Inflation hurts those with fixed income, creates more unemployment, defrauds investors, deters saving, guts true wealth! Now, 10 times that. To what effect?

[libertylover]

blink blink.... are you sure this wasnt from the NY Post?

Even more unbelievable, it's from the New York Times.

[Dilbert San Diego]

But the liberals said that the recent good economic news has nothing to do with the policies of Trump, nothing to do with the tax bill.

[TBP]

Isn’t that what they told us would ABSOLUTELY NOT happen?

[CurlyDave]

...There is little historical evidence tying regulation levels to growth. Regulatory proponents say, in fact, that those rules can have positive economic effects in the long run, saving companies from violations that could cost them both financially and reputationally...

This is palpable BS.

Regulations favor large established companies with the ability to work within regulations, removing regulations favors small disruptive companies which produce dynamic growth in the economy.

Of course the NYTimes favors large, slow growth companies.

[trebb]

There is little historical evidence tying regulation levels to growth. Regulatory proponents say, in fact, that those rules can have positive economic effects in the long run, saving companies from violations that could cost them both financially and reputationally.

Kind of like Nancy Pelosi saying that unemployment benefits put more money into the economy that the actual amount paid - or like saying that with less laws, one is more likely to break the law and get in trouble.....