The pitfalls of overhasty business deregulation

JOHN F Kennedy was fond of the expression “don’t ever take a fence down until you know the reason why it was put up”. First laid out by English writer GK Chesterton, it is a reminder not to rush reforms through without considering the consequences. There are few better examples of how Donald Trump and his supporters are ignoring this principle than Republicans’ plan to scrap the US audit regulator, the Public Company Accounting Oversight Board (PCAOB).

Under the proposal, included as part of the vast tax and spending bill before Congress, the PCAOB’s responsibilities, which include ensuring and policing audit quality, would be folded into the Securities and Exchange Commission (SEC).

The plan may yet fall foul of procedural hurdles. But it is of a piece with other chainsaw-first reforms set in motion since Trump’s return, powered by a belief that all deregulation must be good for business.