Trump admin's zeal to peel back regs is leading us to another era of robber barons
The Trump administration has a clear economic objective: deregulate. Loosening regulations on industries, the White House believes, will lead to faster growth and more jobs. This is the stated reason for pulling the U.S. from the international climate accord, and the economic justification for seeking to rescind the EPA Clean Power Plan that limits carbon emissions from plants.But an examination of history shows that government regulations are not always harmful to industry; they often help business. Indeed, government regulation is as central to the growth of the American economy as markets and dollars.
Historians of the period like me have, in fact, shown that the progressive era regulations often helped businesses by providing them with a more stable, predictable economic environment, where government regulations enabled increased capital investments and expanded consumer purchases. Progressive regulations of the robber baron market were good for businesses and consumers.
The same is true for regulations a century later. Government activities to ensure competition, transparency and safety in various industries give the American economy stability almost unparalleled in any other country.
This is not to say that all regulation is good. Sometimes regulation chokes innovation by slowing change and prohibiting risk taking. This was evidently true for regulated monopolies in mid-20th-century America, including the venerable Bell telephone company.
What the United States needs is less ideology and more detailed attention among politicians to matching regulatory processes with public purposes. That was, of course, the goal of the progressives more than a century ago. If we don’t return to their model, chances are we will continue the current drift into another age of robber barons.
https://theconversation.com/trump-ad...r-barons-84961