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    Home»Economy»What does “pro-business” mean? – Econlib
    Economy

    What does “pro-business” mean? – Econlib

    Press RoomBy Press RoomJanuary 25, 2025No Comments3 Mins Read
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    Long-time readers know that I believe that people underrate the importance of procedural issues. Too many people focus on “outcomes”, not the structure of decision-making.

    To take a recent example, consider the case of TikTok. At first glance, it may appear that I have the same view as President Trump. In fact, our views are radically different. AFAIK, Trump’s view can be described roughly as follows:  TikTok should be shut down when it’s in Trump’s interest to shut it down, and should be allowed to operate when it’s in Trump’s interest to let it operate.

    And here’s my view: The government should not arbitrarily shut down social media apps.

    Those seem like radically different policy views, not the same view.

    Consider the recent case of wind energy regulation:

    Given the high costs associated with building a wind project, and the likelihood of tariffs making that situation worse, the uncertainty produced by a potential halt to permits may also be enough to cause developers to pull the plug on projects – because even if the order itself winds up tossed out in court, that could take years. . . .

    But the idea that you would have a pro-business administration trying to stop private companies from taking economically appropriate action on private land is just so out of step with the role of government that we’re expecting they’re going to clarify their intent.”

    Trump’s executive order is so far-reaching because wind projects regularly need federal permits and other authorizations, even if they’re sited on private or state lands.

    A commonly cited federal nexus is endangered species. Opponents of wind energy have long criticized turbines for being a potential threat to birds, but it is the case that many wind projects are collocated within or near areas for rare bird migration. Cultural heritage impacts can often also be a difficulty.

    At first glance, it might seem like President Trump’s view of regulation is very different from President Biden’s view.  Trump likes coal and Biden likes wind energy.  But from a procedural perspective, I see lots of similarities.  Both presidents could be described as having the following view:

    The construction of new energy projects should be hampered by tariffs that boost the cost of construction.  Furthermore, any project that the president does not like should be tied up by costly regulation involving things like endangered species and cultural preservation.  

    The most important ideological difference in public policy is not which particular industry is favored; rather it is whether government has any legitimate in role favoring one industry over another.



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