88. Ask Trump: Which Regulations?

31 Jan

Donald Trump has said it is urgent to abolish as many federal government regulations as possible (subject to certain limitations). This may sound OK to ordinary citizens, but if you study the details, you will quickly see why Trump is not more specific. The one specific law that he would terminate is the “Dodd-Frank Wall Street Reform and Consumer Protection Act”. He never uses the full name, because this act provides Wall Street reform and consumer (you and me) protection. Abolishing the act takes away our protections and allows banks and investment houses leeway to make more profits at our expense. When major banks and other corporations failed in 2008, you and me (the taxpayers) spent our money in saving them. And, to add insult to injury, many of the offending executives got bonuses that year. So it is the old story, rich Mr. Trump is recklessly increasing profits for his wealthy friends, and you and I will, in some way, pay for it; just like we will have to pay for his “Mexican Wall”.

The reason why all this is possible, is that corporations protect individuals from losses due to reckless actions. A corporation can go bankrupt and take the blame, while the executives escape unharmed. And, rich donors lobby congressmen to provide laws that help them financially. Note that Hillary Clinton supported this protective act.

We can only speculate as to what other regulations Trump wants to remove. He has created a rule that is absurd and harmful: that for every new regulation, two must be abolished. Good government is not a game where you ignore the consequences of what you do — it is serious business that affects people’s lives. Historically, thousands (even millions) have died for improper regulation of pesticides (like DDT), improper testing of drugs (like Thalidomide that harmed babies) and various kinds of pollution and toxins (like lead in the water).

Regulations also protect us from financial trickery designed to increase profits for corporate executives. Currently, when you get a mortgage, other type of loan, credit card, annuity, etc., you can be reasonably certain that you are safe. If the regulation of financial transactions is abolished you might have to hire a lawyer to deal with these, or risk major losses. Our world has become more and more complicated and the citizens will need more protections, not less.

Trump and most Republicans would argue that abolishing regulations, lowering taxes for corporations and wealthy people, etc., will improve our economy and the positive results will “trickle down” and help us ordinary citizens.  Why is it that every such plan starts with making rich people richer, and the middle class can only hope for some trickle down. Don’t be fooled. For many years the royalty class has prospered, but the promised middle-class benefits have not been received.

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