OPINION
Within minutes of Donald Trump's election as president of the United States, Dow futures soared by over 1,200 points, signaling Wall Street's anticipation of a new era of economic growth.
Investors and business leaders are banking on Trump's promise to reduce burdensome regulations, restore job creation, and drive sustained American prosperity. The market's swift response reveals a collective optimism that the nation's economic potential, stifled under Biden administration policies, is primed for revival.
During his first term, Trump cut taxes on small businesses and working families. He required eliminating two regulations before a new one could be implemented.
He protected jobs by renegotiating trade agreements and threatened tariffs on nations like China to create a better economic environment for all Americans. From the secretary of commerce to the Small Business Administration, Trump appointees pursued policies encouraging wealth creation in every corner of the nation.
Trump's pro-business agenda and regulatory approach starkly contrast with the Biden administration's, particularly under Federal Trade Commission (FTC) Chair Lina Khan and Department of Justice (DOJ) Antitrust Division head Jonathan Kanter.
Khan and Kanter's tenures have marked a sea change for antitrust policy in the United States. No longer was the focus of antitrust policy consumer protection, but rather the preemptive regulation of business practices.
This change has disrupted markets, deterred innovation, and, most damagingly, killed jobs.
Several DOJ and FTC actions underscore how Biden-era regulation has suppressed opportunities for Americans in critical sectors.
For example, the FTC celebrated its work to block Spirit Airlines' merger with JetBlue, even though the combined airline would have still been much smaller than the "big four" U.S. airlines. Without the financial lifeline a merger would have provided, Spirit was forced to file for bankruptcy on Nov. 18.
That's right: The FTC claimed it was ensuring competition, but instead, it stopped competition entirely.
In September, the DOJ sued Visa on antitrust grounds to "protect debit card competition." But consumers have no shortage of ways to pay for products.
Merchants and fintech startups are offering consumers new and innovative alternatives. Cash App, Apple Pay, Google Pay, Venmo, and Visa's many direct competitors in debit are all competing with one another.
While Visa may be the biggest player in this market, it has plenty of competitors that prevent it from abusing its leading position. Why strive to grow your business if the government will just attack you for becoming "too big?"
A true monopoly will use its power to quickly force new and smaller competitors out of the market. With payment processing, however, virtually all of the new entrants over the past decade remain in the market.
This is the hallmark of a robust, thriving, competitive marketplace. If Visa were the monopoly President Joe Biden's DOJ claims it is, none of this would be happening.
This socialist mentality of seeing market share as prima facie evidence of wrongdoing will only discourage growth and innovation.
Earlier this year, the FTC also voted unanimously to block Tempur Sealy's proposed acquisition of Mattress Firm, citing concerns over reduced competition, potential price increases, and the possibility of layoffs. Following the FTC's intervention, both companies face operational uncertainties.
Last month, Mattress Firm announced plans to close approximately 200 stores nationwide, resulting in layoffs that affected hundreds of employees. Rather than preventing layoffs, the FTC's actions did the exact opposite.
It's not just large businesses that are affected by the actions of the nation's antitrust cops. Under current DOJ and FTC policies, even minor players face heightened scrutiny.
Khan and Kanter are applying the same scrutiny to small firms as it does to tech giants, leaving many to wonder if the government is actively working against Main Street.
By signaling that market power and size alone are enough to invite government scrutiny, investors have become hesitant to invest in new startups. These investors once fueled rapid innovation and job growth by providing the country's newest businesses the capital they needed to grow.
Startups now face an uphill battle in securing funding. Venture capitalists are wary of the aggressive regulatory environment that might curtail exit opportunities or disrupt partnerships.
This reluctance chills the entrepreneurial climate, particularly in sectors like artificial intelligence, biotechnology, and green technology — areas that bring well-paying jobs and are essential for America's long-term economic leadership.
Fortunately for working families, businesses, and investors, there will soon be a new sheriff in town who has promised to rebalance the tug between regulations and job creation. The U.S. economy can look forward to a return of vibrancy and opportunity, fulfilling investors' hopes and, more importantly, bringing tangible benefits to American workers and families.
The market's optimism is not just about financial gain — it's a vote of confidence in a future where job creation and economic freedom can once again thrive.
Professor Andrew Schwartz is Assistant Professor of Finance at Elon University.
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