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.