When Donald Trump won the election, many in the business community believed better economic times were on the horizon. After all, as one of the most successful businessmen in the world, Trump knows what economic climate is necessary for businesses to thrive. On the campaign trail, Trump promised to put that expertise to good use.
Of course, it didn’t take long for that economic optimism to come to fruition. Just days after the election, the stock market had one of the largest sustained rallies in its history. Trump has only accelerated his plans to get the American economy moving again as president, adding well over the projected amount of jobs in the first month alone.
One of the most effective methods Trump has used to improve economic conditions is to overturn needless regulations. Just days into office, Trump signed an executive order that mandated two regulations be abolished for every new regulation added. From there, he signed multiple bills eliminating burdensome Obama-era regulations.
Unsurprisingly, Trump isn’t done yet. In fact, he just announced a new plan to cut even more regulations. The results could be a boom for the economy.
U.S. President Donald Trump said on Tuesday that his administration is working on changes to Dodd-Frank banking regulations that will make it easier for banks to loan money.
“We’re going to be coming out with some very strong – far beyond recommendations – we’re going to be doing things that are going to be very good for the banking industry so that the banks can loan money to people who need it,” Trump told a meeting with a business leaders from the New York area at the White House.
Signed in 2010, Dodd-Frank was a knee-jerk reaction to the financial crisis. Although well-intentioned, its regulations proved to be burdensome to the economy. By placing such severe restrictions on banks, consumers and businesses have had a hard time getting the vital funds needed to keep the economy humming. Trump’s plan is to eliminate that barrier.
Trump’s plan is likely to get fierce reactions from Democrats, who see the legislation as vital to managing big banks. However, the reality is studies have proven the overbearing regulatory costs have actually accelerated the death of community banks, making “too big to fail” banks even larger as they buy out the competition.
What has become increasingly clear is that Dodd-Frank is in need of severe reform, if not full repeal. President Trump appears poised to be taking a vital step, the results of which should lead to even more economic growth.
[Note: This post was written by Michael Lee. Follow him on Twitter @UAMichaelLee]