Trump’s famous line used to be “You’re fired.” We still like it if it has anything to do with Hillary, Pelosi, or fire smoked meats. But now, Trump is all about employment. With deregulation under the new administration, the economy is growing faster than Clinton’s disapproval ratings. Though not as fast as her scandal list. Companies are sprouting wings on their piggy banks. Fly little piggy. Fly.
The “Trump effect” is allowing companies to dream again, while sleep-talking about money raining from the for spacious skies of America.
On his 11th day in office, Mr. Trump signed an executive order “on reducing regulation and controlling regulatory costs,” including the stipulation that any new regulation must be offset by two regulations rolled back.
Mr. Trump bragged in a news conference last month that he has rolled back 22 regulations for every new one — 67 deregulatory actions, versus three new regulations.
“The notion that deregulation unleashes growth is virtually impossible to find in the data,” said Jared Bernstein… who served as the chief economic adviser to Vice President Joseph R. Biden Jr. “What does matter is this idea that confidence matters. If their expectations about the future are positive, then it does make a difference.”
While concrete numbers of industry growth aren’t in yet, some company digits mimic a daydream.
That decision helped prompt Comcast to announce that it would invest more than $50 billion in infrastructure over the next five years.
Not only Comcast, but Wells Fargo, AT&T, and Fifth Third banking have made American investments, creating jobs for employees and handing out bonuses, while increasing wages. The wage increase meant a minimum money maker of $15 an hour for Wells Fargo. By choice. Not at the firey end of legislation saying “Bankrupt your company on ditsy Barb and her baking bun down at McDonald’s, or else.”
“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.”
But in the administration and across the business community, there is a perception that years of increased environmental, financial and other regulatory oversight by the Obama administration dampened investment and job creation — and that Mr. Trump’s more hands-off approach has unleashed the “animal spirits” of companies that had hoarded cash after the recession of 2008.
We’ve been saying this since we’ve had the mental accumen to form coherent thoughts: government shouldn’t be in the business of business. When the free market is able to be free, it tends to act in everyone’s better interests. More money for the company translates into growth for the company (great for employees and people seeking better jobs), and better options for consumers.
This goes to show businesses don’t need government telling them what to do. When a business has more of its own cash, and isn’t crippled under government regulations, it makes its own choices. In this case, good choices.