The New York Times had a startling headline in the print edition this week, above the fold and in the left-hand column no less: “With Red Tape Losing Its Grip, Firms Ante Up.” The gist of the story is in the first two paragraphs:
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 bolster 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.
In other words, after the eight-year regulatory tsunami of the Obama administration, Donald Trump’s deregulatory policy is having a positive effect on the whole American economy and will benefit both stockholders and employees. It will also increase government tax revenues and, since fewer bureaucrats are needed to enforce fewer regulations, it will decrease government expenditures, reducing the deficit.
The federal civilian labor force has been shrinking since President Trump took office. Trump signed an executive order soon after his inauguration requiring regulators to cut two regulations for every new one they add. So far, however, the ratio has been a remarkable 22-to-1.
Just by completing the Dakota Access Pipeline that the Obama administration had halted just short of completion, North Dakota oil production has increased by 78,000 barrels a day, putting downward pressure on global oil prices and reducing the American balance of payments deficit by $1.7 billion a year. (And, since pipelines are much less prone to accidents than railroads, it greatly reduces the chances of oil spills.) The Keystone Pipeline, finally approved after years of delay, will have a similarly positive effect when it comes online.
The powers-that-be at the New York Times and their fellow travelers elsewhere in the media would dearly love for Donald Trump to fail miserably as president, bringing on the blue wave next November that would give Congress to the Democrats, whatever the cost to the country. But if even the Times feels it necessary to report that “A wave of optimism has swept over American business leaders.” A blue wave, therefore, may be a lot less likely to sweep over the Republican Congress.
