Trump deregulation will boost household income by $3,100, report finds

By Fred Lucas | The Daily Signal

The Trump administration deregulation efforts will raise incomes by about $3,100 per household over the next five to 10 years, and sharply reduce prices for consumers, according to a report by the White House Council of Economic Advisers.

“The deregulatory efforts of the Trump administration have also removed mandates from employers, especially smaller businesses, and have removed burdens that would have eliminated many small bank lenders from the marketplace,” Casey Mulligan, the chief economist for the Council of Economic Advisers, told reporters Friday. “These deregulatory actions are raising real incomes by increasing competition, productivity, and wages.”

WhiteHouse.gov

The report takes a sampling of 20 major deregulatory efforts, which it projects alone will save consumers and businesses about $220 billion annually, and increase after-inflation incomes by 1.3%.

The Council of Economic Advisers report is titled “The Economic Effects of Federal Deregulation Since January 2017: An Interim Report.”

The report takes a sampling of 20 major deregulatory efforts, which it projects alone will save consumers and businesses about $220 billion annually, and increase after-inflation incomes by 1.3%.

“Many of the most notable deregulatory efforts in American history, such as the deregulation of airlines and trucking that began during the Carter administration, did not have such large aggregate effects,” the Council of Economic Advisers report says.

The aggressive deregulation also cuts consumer prices for prescription drugs, health insurance, and telecommunications, removes mandates from employers, and eliminates rules keeping small lenders from the marketplace, the report says.

The report talks about the hidden costs of regulations.

“The ongoing introduction of costly regulations had previously been subtracting an additional 0.2 percent per year from real incomes, thereby giving the false impression that the American economy was fundamentally incapable of anything better than slow growth,” the Council of Economic Advisers report says. “Now, new regulations are budgeted and kept to a minimum.”

The report says prescription drug prices have long outpaced inflation, but in the last two years, price hikes fell by more than 11%, and even below inflation. It says that in 2018, prescription prices, “even declined in nominal terms over the calendar year for the first time since 1972.”

“We estimate that the results of these actions will save consumers almost 10 percent on retail prescription drugs, which results in an increase of $32 billion per year in the purchasing power of the incomes of Americans (including both consumers and producers),” the report says.

James Gattuso, senior fellow in regulatory policy at The Heritage Foundation, noted the depth of the Council of Economic Advisers report.

“They really dug in and looked at rules that really had an impact. This showed a big impact,” Gattuso told The Daily Signal. “The administration should not lose momentum. They are nowhere near finished. This is not mission accomplished. There are still a lot of regulations out there.”

When Trump came in, he worked with the Republican Congress through the Congressional Review Act to sign 16 bills deregulating education, mining, and retirement accounts. The Council of Economic Advisers projects this will mean an increase in real incomes of $40 billion for the country.

The Tax Cuts and Jobs Act, or tax reform, and the banking bill also had a big impact, Mulligan said.

“Consumers are also saving money on internet access: about $40 per subscriber thanks to the deregulatory actions of Congress and President Trump,” Mulligan said. “Considering that most households have multiple internet subscriptions, when applied to both wired and wireless, $40 per subscription becomes $15 billion per year in the aggregate.”

Image courtesy of WhiteHouse.gov

6 thoughts on “Trump deregulation will boost household income by $3,100, report finds

  1. Pres Trump working for working Americans while the leftist swamp works against Working Americans while working for Anti Americans and illegal
    invaders..It’s amazing the difference between the former America hatter Obola
    with his bend over tour and economy killing over regulation and free wheel spending of our money and Pres Trump who works for NO Check but only his love of country in the office every morning early working for America and All Americans…Now if we could get Trump to come and clean up VT after he’s done in The DC swamp..

  2. And let’s not forget that e are paying FAR LESS for gasoline at the pump these days due to Trump’s initiative for allowing drilling and fracking. This keeps money (real dollars) in OUR pockets, and it makes are far less dependent now on Arab oil. I say Arab oil because OPEC would meet, raise the price of a barrel of oil and we would see gas prices as high as $4.27 a gallon. I now pay $2.19 a gallon in NC, and it’s ranged from $1.99 to about $2.39 for the past three years here. John Tyler- NC

  3. If the number is $3,100, it”s Presient Trump’s fault that it wasn’t higher. If it were $10,000, it would be the Presidents fault that it were not higher. Bottom line, no matter what President Trump does in the eyes of the Lib/Socialist,/Dem/Prog elets, it would be wrong.

    Q

  4. You will never see any recognition from the liberal press or any of the progressive/socialist on this.
    They won’t give Trump any positive recognition whatsoever.

  5. Too bad the sorry state of Vermont can’t take a hint from this report. Vermont, like it’s sister sewer California, continues to attempt to control and regulate everything under the sun and then some. You can’t build affordable housing when business is burdened with everything from Act 250 to draconian sewer regulations and this is the same throughout every aspect of life and business in Vermont.

    • That is why we need to target the governor’s office next year. Too many say we need to focus on the legislative offices but that one office can make a major difference in Vermont’s direction.

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