How Obama regulations throttled the US economy

Wall Street Journal:
First, and no surprise here: From 2010-15 regulatory risk jumped—an average increase across all industries of 79%.

Second, and more surprising: As regulatory risk climbed, annual capital expenditures fell, a total drop of nearly $32 billion when comparing 2010 to 2015. This negative relationship was strong across the board, but it was statistically tightest for “industrials” (heavy manufacturing plus railroads and airlines).

Third, as regulatory risks grew and capital expenditures shrank, major corporations also cut jobs by more than 1.1 million. Among the biggest losers were heavy manufacturing, airlines, railroads, information technology and consumer products—America’s industrial core.

Fourth, while the business of making things and moving them to market was eroding, the value of gaming the government increased. The Vogel and Hood team constructed two trial portfolios composed solely of companies that ranked high in lobbying strength. From 2010-16 these portfolios outperformed the S&P 500 by 22% and 27%.

In other words, Trump voters were right to see the Obama administration and its designated heir, Hillary Clinton, as hostile to industry. That makes what happened on Nov. 8 less of a mystery. Under Mrs. Clinton, regulatory risk would have only increased further. Mr. Trump pledged to reverse course. Voters in manufacturing and agricultural states heard both messages loud and clear.
I think this is also why you are seeing the stock market react so positively to Trump's election.  Investors likely believe that deregulation will result increased productivity and jobs and a growing economy.


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