Goldman Finds Trump Deregulation Agenda Doing Little for Economy

President Donald Trump’s deregulation agenda for industry has had limited impact on the job market and capital spending during his first year in office, according to Goldman Sachs (NYSE:GS).

A study by the bank found little evidence that “non-financial deregulation has had meaningful macroeconomic impact to date,” according to research report released on Sunday that analyzed commentary from equity analysts, economic data and post-election stock returns. “While press reports often highlight deregulation as a key driver of the economy’s acceleration over the last year, identifying its causal impact is challenging.”

The findings aren’t surprising, the bank said. Rolling back regulations can be a “slow and difficult” task, regulations don’t impose that high of a cost, and state and local actors are often responsible for red tape that really make a difference, according to Goldman Sachs.

“We find no evidence that employment or capital spending accelerated more after the election in areas where regulatory burdens are higher,” it said.

Source: Investing

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