President Trump has been rightly given credit for the booming United States economy. Many people attribute this success to the large tax cut he signed into law.
Certainly, this has had a positive effect on growing the economy. Unemployment is at a 50-year low, wages are rising and there are 7 million job openings right now, which means employers will be willing to pay more to fill these open positions.
Across the board, the economy is strong.
However, Trump doesn’t get enough credit for cutting large numbers of job-killing regulations. In fact, these regulation cuts may have more to do with the strong economy than tax cuts.
Of course, tax cuts help grow the economy and drive increased revenue to the U.S. Department of the Treasury. President Reagan made this a selling point of his massive tax cuts in the 1980s.
Reagan’s tax cuts were even larger than the Trump tax cuts. In 1986, Reagan was able to cut the tax brackets down from six to three.
He used the “Laffer Curve,” which showed that by cutting taxes, you could increase revenue collected in taxes due to increased incomes from a growing economy. The curve was named after economist Art Laffer. Contrary to what liberals say, Reagan was correct and tax revenue grew every year from 1983 on.
That is a good argument for tax cuts; however, the best argument is that you get to keep your own money. It belongs to you, not the government.
As important as tax cuts are for growing the economy, cutting regulations and getting the government off the backs of job creators is just as – if not more — important.
Trump Cuts the Red Tape
President Trump has cut more job-killing regulations than anybody in modern American history. He has reversed the tide of the Obama years, when regulations and proposed rules amounted to nearly 90,000 pages on the Federal Register by the time Obama left office.
The Council of Economic Advisers released a report showing the successes of the deregulation policies of the Trump administration.
The report said, “Before 2017, the regulatory norm was the perennial addition of new regulations. Between 2001 and 2016, the Federal government added an average of 53 economically significant regulations each year. During the Trump administration, the average has been only 4. … Even if no old regulations.”
The report continued: “The effect, relative to a regulatory freeze, of removing 20 costly Federal regulations has been to increase real incomes by 1.3 percent. In total, this is 2.1 percent more income—about $3,100 per household per year—relative to the previous growth path.”
The moral of the story: Get the government out of the way of business owners; they create jobs and the product and services we all desire.
The modern economy was created by creative entrepreneurs and inventors, not by bureaucrats in Washington, D.C.
The more latitude entrepreneurs are given to pursue new business practices and inventions, the better.
We all benefit from the lack of government regulations.
Presidents have paid lip service to cutting regulations in the past, but never followed through. In fact, they drastically increased regulations.
Not this president. President Trump has slashed red tape and followed through on his promises. He was a business owner himself and knows what it’s like to have the government on his back.
The economy is better for it.