US President Donald Trump has signed an executive order slashing the number of business regulations in America. By fulfilling this key election promise, Trump has made evident his commitment to making sure true capitalism is restored in the country.
Trump’s promise to decrease regulations was a key factor in determining his successful election result. Echoing the election campaign, the order states “it is important that for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.”
While signing the order, Trump made clear his intentions to cut “regulations massively for small business”. He also said “the American dream is back” and that he wants to “create an environment for small business” by cutting down regulations.
Small businesses are crucial for the US economy and have contributed to the country’s economic expansion for decades. More than 50% of America’s working population is employed in small business. Since 1995, 65% of new jobs have been created by the country’s small business sector.
Trump’s plans to remove regulatory burdens on America’s business environment will help boost economic growth by providing greater opportunities for small businesses to be established and expand.
For decades, regulations have been responsible for not only preventing small business growth, but also for giving unfair advantages to large corporations. Regulations have been a useful instrument in political expediency, with sly politicians in collusion with corporations promising more regulations as a method of exploiting anti-capitalist sentiment. Essentially, politicians were promising to do more of the exact same thing that resulted in the factors fuelling anti-capitalist sentiment in the first place: imposing more regulations.
Many small and medium-sized businesses were unable to withstand regulatory burdens, and thus were unable to compete. The resulting lack of competition only ended up helping large corporations, whose size allowed them to withstand regulations, to expand.
But those days of cronyism are now over. A more proper form of capitalism is now on its way thanks to Trump and his commitment to cutting down regulations and taxes. Instead of imposing regulations to satisfy a disillusioned population, Trump has chosen to carry out the real solution.
However, Reuters says that this executive order will not affect certain independent agencies, such as those who contributed to Dodd-Frank. But this is of no concern as Sean Spicer has already stated this is simply a “first step” in Trump’s journey to remove the regulatory burden. Trump has already labelled Dodd-Frank a “disaster”, meaning similar executive orders and possible legislation to further tackle today’s regulatory burden are to be expected in the future.