U.S. business leaders' newfound confidence is being tied to the Trump administration's economic policy agenda and regulatory pullback -- signaling there will be no further regulations put in place.
“It’s an overall sense that you’re not going to face any new regulatory fights,” said Granger MacDonald, Chairman of the Board of the National Association of Home Builders and a home builder in Kerrville, Texas, adding, “We’re not spending more, which is the main thing. We’re not seeing any savings, but we’re not seeing any increases.” The New York Times reports that Trump’s hands-off approach unleashed the “animal spirits” of companies saving money after the Great Recession.
The evidence is weak that regulation actually reduces economic activity or that deregulation stimulates it. But business executives are largely convinced that the cost of complying with rules diverts money that could be invested elsewhere. And 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.
