Tuesday, January 02, 2018

Business, with Less Regulation, Loosen Purse Strings

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.

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.

More

Even before it became clear that Republicans would pass a major tax cut, capital spending had risen significantly, climbing at an annualized rate of 6.2 percent during the first three quarters of last year. Surveys of planned spending also show increases.

Economists see a plausible connection between Mr. Trump's determination to prune the federal rule book and the willingness of businesses to crank open their vaults. Measures of business confidence have climbed to record heights during Mr. Trump's first year.

Businesses acknowledge that the most important reason for their increased optimism is the simple fact that the domestic economy continues to expand, with few clouds on the horizon.

The Business Roundtable, a corporate lobbying group in Washington, reported last month that "regulatory costs" were no longer the top concern of American executives, for the first time in six years. Mr. Zandi said that regulation was still the top concern in Moody's survey of business confidence, but that it was rapidly losing ground to concerns about the availability of labor.

The National Association of Manufacturers' fourth-quarter member survey found that fewer than half of manufacturers cited an "unfavorable business climate" -- including regulations and taxes -- as a challenge to their business, down from nearly three-quarters a year ago.

Comments

Oh Noes, even the New York Times now has to concede that businesses are more willing to expand and invest with the elimination of the unnecessary regulations of the Obama Administration...

-Progressives everywhere

#1 | Posted by Rightocenter at 2018-01-02 12:14 AM

Who says they were unnecessary?
Rich greedy -------- with no morals or concern for others in charge of business are thrilled that another rich greedy jerk-off with no morals or concern for others is in charge. They know they are now free to exploit labor and the environment with aplomb. No wonder they're in a good mood.

#2 | Posted by TFDNihilist at 2018-01-02 07:41 AM

Yes.

There are conservative opinion writers at the NYT.

This is not exactly earth shaking news.

#3 | Posted by Angrydad at 2018-01-02 07:58 AM

What I get from this is that corporations have played a zero sum game with the nation for at least a decade.

#4 | Posted by Zed at 2018-01-02 08:04 AM

The Obama administration was hostile to business. Whether or not that is a good thing is up to debate. Nevertheless, when the corporate tax burden is reduced and onerous regulations are dropped the natural result is business expansion. Again, whether or not this expansion comes at a cost is up to debate.

#5 | Posted by JeffJ at 2018-01-02 11:16 AM

The Obama administration was hostile to business.

#5 | Posted by JeffJ at 2018-01-02 11:16 AM | Reply

Business, in 2008, was hostile to the rest of us. If you agree with my #4 then you agree they never stopped.

#6 | Posted by Zed at 2018-01-02 11:57 AM

Zed, Angry and TFD succicntly sum up the mindset that the Left has about business: They are only out to destroy us and will do anything they can to accomplish their goal.

This type of shortsightedness is what led to the slowest recovery on record and will cause the Left's spinmeisters to work overtime to come up with new talking points to shift focus on economic growth away from the Administration and the Corporations themselves since any such success destroys the anti-corporate narrative that is so vital for their labor union base.

Unfortunately for the Democrats, any economic success works against them in 2018 so they will be forced to root against it.

#7 | Posted by Rightocenter at 2018-01-02 12:23 PM

Zed, Angry and TFD succicntly sum up the mindset that the Left has about business

#7 | Posted by Rightocenter

ZED's a businessman.

You were alive and un-intoxicated for 2008, weren't you?

#8 | Posted by Zed at 2018-01-02 12:30 PM

Any economic success works against them in 2018 so they will be forced to root against it.

#7 | Posted by Rightocenter at 2018-01-

I'm going to be doing relatively well in 2018, although Trump took away with one hand what he said I could have with the other.

I don't feel like surrendering my values for chump change. I'll leave that for you.

#9 | Posted by Zed at 2018-01-02 12:33 PM

They are only out to destroy us and will do anything they can to accomplish their goal.

And the Oscar for Best Actress in a Drama goes to........RightofCenter!

#10 | Posted by jpw at 2018-01-02 12:38 PM

My wife and I have three economic irons on the fire, and are working on a fourth. That's Depression caution, as well as one lesson from 2008.

I do well because I take maybe ten full days off a year. I'm far from complaining. I'm glad to trade nap time for a little stability.

Donald Trump is a cross-eyed bastard no matter how well the economy may go.

#11 | Posted by Zed at 2018-01-02 12:39 PM

This type of shortsightedness is what led to the slowest recovery on record

But more of what precipitated the worst recession since the 1920's surely would have worked better, right?

When the spurt of growth turns out to be short lived, will you still give Trump credit?

#12 | Posted by jpw at 2018-01-02 12:40 PM

You were alive and un-intoxicated for 2008, weren't you?

I was actively trying to help clients sort out post Lehman Bankruptcy issues, so I am sure I am more familiar with everything that happened than what Talking Points Memo told you to believe.

#13 | Posted by Rightocenter at 2018-01-02 12:42 PM

When the spurt of growth turns out to be short lived, will you still give Trump credit?

No, I will be more than happy to blame him and his policies, will you give Trump credit if it persists for the next 3-4 years?

#14 | Posted by Rightocenter at 2018-01-02 12:43 PM

will you give Trump credit if it persists for the next 3-4 years?

#14 | Posted by Rightocenter at 2018-01-02 12:43 PM | Reply | Flag

Serious question: Why does it benefit the nation to give Donald Trump credit for anything?

#15 | Posted by Zed at 2018-01-02 12:44 PM

Not that Donald doesn't steal credit every freaking chance he gets.

#16 | Posted by Zed at 2018-01-02 12:45 PM

#10

I am merely paraphrasing TFD's "Rich greedy -------- with no morals or concern for others in charge of business are thrilled that another rich greedy jerk-off with no morals or concern for others is in charge. They know they are now free to exploit labor and the environment with aplomb."

Nice try at assigning positions though, maybe Snoofy, Dirk and Corky can give you a few lessons.

#17 | Posted by Rightocenter at 2018-01-02 12:46 PM

#15

It's the same as the benefit to the nation to blame Donald Trump for everything.

#18 | Posted by Rightocenter at 2018-01-02 12:47 PM

The Obama administration was hostile to business. Whether or not that is a good thing is up to debate. Nevertheless, when the corporate tax burden is reduced and onerous regulations are dropped the natural result is business expansion. Again, whether or not this expansion comes at a cost is up to debate.
#5 | POSTED BY JEFFJ

Your statement is too general.

Regulations can be positive and negative, for instance the FAA/NTSB has done a wonderful job regulating the airline industry and hopefully will continue to do the same. This has increased airline travel, aircraft expenditures, and revenue for the industry

Yet the regulations within the Terminals TSA/HLS absolutely sucks and destroys the experience and security.

Its not whether regulations in general are good or bad, unless you are a libertarian, its whether the accomplish their goal or have horrendous side effects. For instance ObamaCares "pain survey" indirectly caused the opiod addiction and actually lowered the life expectancy in the US.

It should be understood by the government, that more regulations within a segment/industry eventually have a diminishing return, and become overly burdensome. Some industries are under burdened, other overly.

Some of Obama's regulations were good, others were bad. People arguing in the absolutes are just partisan.

Obama was overly generous to WallStreet (no prosecutions), Insurance&HealthCareCompanies (Obamacare), TechCompanies (Solyndra), and Universities (student loans).

#19 | Posted by AndreaMackris at 2018-01-02 12:49 PM

Not that Donald doesn't steal credit every freaking chance he gets.

In case you haven't already figured this out over the past year, that is what classic narcissists do.

#20 | Posted by Rightocenter at 2018-01-02 12:49 PM

It's the same as the benefit to the nation to blame Donald Trump for everything.

#18 | Posted by Rightocenter at 2018-01-02

There's no need to blame Trump for everything, even though the sum of his personality and actions to date make it seem like he's evil enough for that.

It is NOT in the nation's interest to feed that maniac's evil by swelling his ego till it pops.

The proper time to talk about Donald's positive traits, if such exist, is during the sentencing phase of his trial.

#21 | Posted by Zed at 2018-01-02 12:51 PM

#19

One of the biggest issues is the total proliferation of regulations since the early 1970s: In 1960, the Code of Federal Regulations ("CFR") contained 22,877 pages. Since 1975, its total page count has grown from 71,224 to 185,053 at the end of 2016, including the 1,170-page index -- a 160 percent increase. The number of CFR bound volumes stands at 242, compared with 133 in 1975. During the Obama Administration, the CFR added an astonishing 61 volumes, or over 55% of that growth.

Thousands of Pages and Rules in the Federal Register

#22 | Posted by Rightocenter at 2018-01-02 12:57 PM

will you give Trump credit if it persists for the next 3-4 years?

If it's the actual companies saying it.

Not if it's DOTUS claiming it only to find out that expansions/raises/ect were planned prior to the policy changes.

#23 | Posted by jpw at 2018-01-02 01:01 PM

For instance ObamaCares "pain survey" indirectly caused the opiod addiction and actually lowered the life expectancy in the US.

The ACA was enacted in the late 90's? Hmmm you learn something new every day...

#24 | Posted by jpw at 2018-01-02 01:04 PM

There's no need to blame Trump for everything, even though the sum of his personality and actions to date make it seem like he's evil enough for that.

I agree but you (and the rest of the echo chamber) should heed your own advice.

#25 | Posted by Rightocenter at 2018-01-02 01:08 PM

we want our regulations printed on postcard!

Sincerely

rightoecentre

#26 | Posted by ChiefTutMoses at 2018-01-02 01:37 PM

The ACA was enacted in the late 90's? Hmmm you learn something new every day...

#24 | POSTED BY JPW

Your idea of learning is why you are still in school.

As part of an Obama­care initiative meant to reward quality care, the Centers for Medicare and Medicaid Services (CMS) is allocating some $1.5 billion in Medicare payments to hospitals based on criteria that include patient-satisfaction surveys. Among the questions: "During this hospital stay, how often did the hospital staff do everything they could to help you with your pain?" And: "How often was your pain well controlled?
www.google.com

#27 | Posted by AndreaMackris at 2018-01-02 03:29 PM

The ACA was enacted in the late 90's? Hmmm you learn something new every day...

#24 | POSTED BY JPW

Your idea of learning is why you are still in school.

As part of an Obama­care initiative meant to reward quality care, the Centers for Medicare and Medicaid Services (CMS) is allocating some $1.5 billion in Medicare payments to hospitals based on criteria that include patient-satisfaction surveys. Among the questions: "During this hospital stay, how often did the hospital staff do everything they could to help you with your pain?" And: "How often was your pain well controlled?
www.google.com

#28 | Posted by AndreaMackris at 2018-01-02 03:29 PM

Your idea of learning is why you are still in school.

That would sting more if you weren't wrong about damn near everything you chime in on.

www.nytimes.com

The opioid epidemic started in the 90's and prescriptions peaked in 2010, the year the ACA was passed and four years before much of it was implemented.

And yes, I saw articles describing how the ACA questionnaire exacerbated the problem, but it certainly didn't "indirectly cause" the epidemic.

So I guess that means your idea of learning means the schools failed you bigly?

#29 | Posted by jpw at 2018-01-02 04:31 PM

The opioid epidemic started in the 90's and prescriptions peaked in 2010, the year the ACA was passed and four years before much of it was implemented.

And yes, I saw articles describing how the ACA questionnaire exacerbated the problem, but it certainly didn't "indirectly cause" the epidemic.

I'm with JPW on this issue, the ACA didn't help things but the epidemic was raging long before its passage.

#30 | Posted by Rightocenter at 2018-01-02 04:46 PM

#2
thread closer.

--what is with the closed threads of late anyway.

#31 | Posted by ichiro at 2018-01-03 06:30 AM

will you give Trump credit if it persists for the next 3-4 years?

#14 | POSTED BY RIGHTOCENTER AT 2018-01-02 12:43 PM | REPLY | FLAG:

I would need to see 5 years. The first few months of a presidency are under the previous administration's policies.

#32 | Posted by BruceBanner at 2018-01-03 08:44 AM

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