President Trump understands something that few on the left have figured out and fewer yet will acknowledge. Regulations force business to spend money on unproductive work, and thus reduce the national wealth.
The problem is that without checks, the regulatory state grows and grows, eventually squeezing the profitability out of firms. The result is a decline in business growth and a loss of employment.
Fully aware of these facts, President Trump has already made terrific progress in rolling back stifling regulations, estimated by one policy institute to be worth $85 billion. That’s a lot of useless paperwork gone. Paperwork that former President Obama was adding to cost the taxpayers ridiculous amounts of money.
In rolling back regulations, the president has had help from Congress. “Working in tandem with the GOP-led Congress, President Donald Trump has managed to save American businesses, investors and consumers an estimated $60 billion…”
The claim might be made that people are still employed if they are working to comply with regulations. While true, that misses the point. They are not doing work that is productive, meaning work that directly or indirectly contributes to profitability. Therefore, what they are doing is a waste.
The individual regulations seem minor, but they add up quickly and become a terrible burden, channeling resources away from creating goods and services. For example, “[j]ust the recent reversal of the Obama administration’s ‘Waters of the United States’ rule, which would have subjected backyard ponds and potentially even drainage ditches to federal regulation, could save $16 million.”
Are drainage ditches a federal issue? Hardly.
Here’s another one: “[T]he repeal of the ‘Fair Pay and Safe Workplaces,’ which would have required companies to disclose all allegations of labor law violations to the Department of Labor, was slated to save $73 million in costs and 930,000 hours of paperwork.”
These regulations are given such magnanimous sounding names. Who would be opposed to safe workplaces or fairness in wages? Yet just because such a title is given to a bill or regulation does not mean that’s what will be achieved. Many people figured out the hard way that the “Affordable Care Act” wasn’t. So much for nice names.
President Trump is far from finished with his work in cutting regulations. In fact, we can expect it to be a continuing feature of his administration as he seeks to free business from the regulatory state that was only made more repressive by Mr. Obama. This is good news for American workers who will benefit from the resulting business growth.
Source: Conservative Tribune