American business leaders are feeling optimistic.
President Donald Trump's tax reform victory proved beneficial for corporate America in general and the real estate industry in particular. In addition, the new administration's plans for financial deregulation has executives who believe that abiding by a stringent set of rules costs money and slows down growth breathing a sigh of relief. This new confidence could help create jobs, raise wages and boost economic growth, the New York Times reports.
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Since last January, an estimated 1,600 planned regulatory actions have been delayed, withdrawn or made inactive. At the same time, the economy has been expanding and unemployment has continued to decline, contributing to the perception that regulations previously set by the Obama administration had been dampening investment and job creation.
Aecom, which specializes in infrastructure projects, is one company that could benefit from less strict rules. Projects that took years to complete because of tight regulations could now move forward and reach completion faster than before. As more investments funnel into infrastructure projects, more jobs could be created as well.
Banks, which were previously held to strict standards set after the 2008 financial crisis, have also been subject to a number of new regulations, including the Dodd-Frank Act, which requires lenders to keep more capital on their books when issuing a loan. The act was put in place to prevent another financial crisis, but has been criticized for hurting lenders and limiting options for funding, thereby stunting economic growth. Deregulation could mean increased lending and more development in the coming years.
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