Perry Stresses Deregulation at Iowa Campaign Stop
GOP caucus hopeful Rick Perry has repeatedly called for deregulation of business to spur job creation and he iterated those calls over the weekend in Johnson County.
But some experts said such deregulation of government may not create jobs.
"It's not as simple as saying if you deregulate, then jobs will be created," said University of Iowa economics Professor Beth Ingram. "Sometimes … creating more regulations would produce more jobs and vice versa."
But during a Johnson County campaign stop, the Texas governor told the crowd less taxation, regulation, and litigation would be the key to job creation and bolstering the economy.
"We need a president who understands that prosperity will be brought back to America when we bring back our greatest economic advantage—freedom," he said on Oct. 7 at the Johnson County Republicans' barbecue in Tiffin.
Perry said deregulation would not only create jobs but would improve America's reputation abroad.
"Stop strangling the American domestic-energy industry with regulations, and we again can become a country that not only the rest of the world respects—because we [will] become a powerful economic country again," he said.
Still, Ingram noted there are merits to restrictions on business.
"In general, there are times when you want regulations in the economy when the market isn't going to do what's needed," she said. "Businesses even want regulations to make sure no one commits fraud. It creates a broad playing field."
Deregulation has been a hot topic in the wake of the 2008 financial crisis. Free-market proponents—mostly aligned with the Republicans—have pushed for less regulation, including in the financial sector.
The Heritage Foundation, for instance, charges that the Obama administration's over-regulation is a job-killer. Heritage's Mike Brownfield wrote last month, "During President Obama's first 26 months in office, his administration imposed 75 new major regulations, with reported costs to the private sector exceeding $40 billion."
Left-leaning economists, though, say deregulation would increase instability in the economy. Liberal blog Think Progress, for instance, points out that financial institutions are bringing in big profits in spite of the Dodd-Frank financial regulations approved by Congress last year.
Perry's message was well-received by those in attendance last week in Tiffin.
"You think about it—the most friendly states for business—they are states that have fewer taxes, less regulation," said University of Iowa freshman Sahan Thenuwara. "And mostly, Republican governor-run states."
Perry said more jobs would be created by lowering corporate and income taxes, and concluded his speech with a vow he's made to several audiences during his campaign.
"I promise you one other thing," he said. "I'll get up every day to make government as inconsequential in your life as I can make it."