Carl Icahn Blames Obama’s Regulations for Having Stifled U.S. Economy
To say that Carl Icahn, Donald Trump’s special adviser on federal regulations, wants to cut business regulations would be an understatement. The noted billionaire investor will likely recommend that Trump scrap a whole bunch of regulations. But Icahn’s efforts could launch an interminable series of legal battles that could grind Washington to a halt.
Icahn has criticized the outgoing Barack Obama administration for wasting money on imposing too many new regulations. He said that Obama introduced $1.0 trillion in new regulations, stifling investment and growth in the U.S. (Source: “Trump’s team draws target on federal regulations,” The Hill, December 31, 2016.)
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Icahn could prompt even greater political division in Washington. He has blamed the United States Environmental Protection Agency (EPA) for having wasted billions of dollars. Icahn said that many regulations have stifled the mobilization of capital and the recruitment of new workers.
He said that with fewer regulations, entrepreneurs will be better able to create jobs and support communities. Icahn, who has known president-elect Donald Trump for many years, blamed the Obama administration for having pitted many businesses against the government during his tenure. (Source: Ibid.)
Yet, Icahn’s critics point to the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act as having proven necessary to improve accountability. President Obama passed the latter act in July 2010. It was intended to help reduce overall risk in the financial system, including derivatives.
But the burden of regulatory compliance exacts a toll on small U.S. firms and banks. These would be the very same small companies that remained excluded from the 2008 financial crisis. Still, Icahn does not simply want to scrap all regulations.
It goes further than that. He wants to encourage more responsible decisions. He does not want to simply give carte blanche to the companies. Icahn could encourage significant changes to—but not scrap altogether—sections of Dodd-Frank, which make it hard for banks to lend. (Source: Ibid.)
Meanwhile, with the help of former Oklahoma attorney general Scott Pruitt, Icahn will most likely target Obama’s climate agenda. Indeed, Pruitt will probably try to change the entire way in which the EPA works.
Americans can expect Pruitt to cut the EPA’s rules for power plants, water, ozone, and fuel economy. Pruitt is an attorney. He will need all his legal skills because, before even attempting to implement Trump’s plan, he and Trump will need to take on environmentalists. That sounds like a long battle.
