Some advocacy groups in Tennessee are applauding President Donald Trump’s executive order that instructs federal agencies to deregulate the economy, saying the order could help the state recover from the economic effect of the response to COVID-19.
Trump’s order, signed Tuesday, directs the heads of all federal agencies to waive regulations that could inhibit an economic recovery if it does not impair public health or safety. The order also directs agencies to provide guidance to businesses for what the law requires so they feel more confident reopening.
“Just as we continue to battle COVID-19 itself, so too must we now join together to overcome the effects the virus has had on our economy,” Trump said. “Success will require the efforts not only of the Federal Government, but also of every state, tribe, territory, and locality; of businesses, nonprofits, and houses of worship; and of the American people. To aid those efforts, agencies must continue to remove barriers to the greatest engine of economic prosperity the world has ever known: the innovation, initiative, and drive of the American people.”
On the state level, Gov. Bill Lee has provided some deregulation, including fewer restrictions on licensing for health care and other professions. He also ordered extensions for tax filings.
Most of Tennessee’s economy temporarily shut down to fight the spread of COVID-19, but Lee has begun a phased approach to reopening. Although capacity restrictions are being lifted and most businesses can reopen, strict social distancing guidelines still are in place, and the state has started its recovery from job losses and lack of economic activity.
“Hundreds of thousands of Tennesseans are unemployed as a direct result of the government’s response to the COVID-19 crisis,” Justin Owen, the president of the free-market Beacon Center of Tennessee, told The Center Square. “In order to recover, it needs to be as easy as possible for them to get back into the workforce. We live in an over-regulated society, where new regulations seem to pop up every day. For the first time in quite a while, we are finally starting to go the other way because of COVID-19. Any efforts to cut red tape at any level of government should be welcomed with open arms.”
Owen said all levels of government should focus on cutting regulations across the board and ensuring it is not only large corporations that see the benefits. He said businesses should be able to reopen as long as they can do so safely.
Jim Brown, the Tennessee director for the National Federation of Independent Business, told The Center Square the COVID-19 shutdown hurt small businesses across all industries and they all would benefit from deregulation.
“Many small business owners find burdensome regulations the most challenging part of business operations,” Brown said. “Many are costly to comply with but also take up valuable time complying with associated paperwork requirements. Now more than ever, small business owners need regulatory relief so they can focus on managing their business through this economic and health crisis.”
Brown and Owen said the state and federal government should continue this regulatory relief post-COVID-19 recovery to ensure businesses continue to have an easier time operating.
“If a regulation has to be suspended during a crisis, then it shouldn’t exist in the first place,” Owen said. “In particular, regulations around telemedicine, certificates of need that require government permission to add health care services, and overly burdensome occupational licensing that keep people out of good jobs should be removed forever. These changes will expand access to quality healthcare for those who need it most, and help get Tennesseans back to work.”
