Business Report: What the Trump administration is and isn't doin - Hawaii News Now - KGMB and KHNL

Business Report: What the Trump administration is and isn't doing for jobs

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HONOLULU (HawaiiNewsNow) -

Democrats are saying President Trump and Republicans are breaking his promise to workers by rolling back workplace safety rules. But what exactly did the president promise?  He said he would reduce regulation so businesses could grow. And the administration actually pursuing such a policy, on the premise that the less regulation means more money to grow and to hire. But the promise to create jobs is a little trickier.

Ford's decision to look for job cuts after sales fell is a reminder to us all that most companies spend more on wages than any other thing, so when a company's profits slip, the first place they look for savings is job cuts, or moving jobs to someplace where wages are lower.

This is not something that fewer regulations can address in any important way, because money spent complying with regulations is a fraction of money spent on payroll. More broadly, any economist will tell you there are limits to what government can do to grow the economy. Government is big, but the economy is bigger. 

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