A series of recent events suggest that the president-elect and his aides are trying to kill off America’s retail industry, according to two experts.
Trump, who has repeatedly criticized American retailers, said in an interview with Bloomberg TV that “the retail sector has lost its mojo” and that it is now a “failed business.”
Trump has proposed eliminating the Department of Commerce’s Bureau of Industry and Security, which administers the Consumer Financial Protection Bureau and the Securities and Exchange Commission.
He has also proposed cutting back the Securities Investor Protection Corporation and the Financial Stability Oversight Council.
In an interview on Fox News, Malliers Association president Robert J. Shiller said that “it’s a good bet that there will be some kind of cuts to consumer protections that are going to have a big impact on retailers.”
Shiller also said that Trump’s policies “will have an impact on our retailers and on the retail sector in general.”
While Trump’s proposed tax cuts, cuts to food stamps and other government spending would reduce the value of the consumer dollar, Shiller argued that “there is no real downside to these cuts to the consumer price index.”
But Malliers said that a “major blow” would come from the elimination of the Federal Reserve, which would lead to a sharp decline in the purchasing power of consumers.
Malliers has also called for the elimination or restructuring of “unnecessary, harmful government regulations, and subsidies for companies that have no business to impose these regulations.”
“These are the very things that are destroying our economy,” Shiller added.
Shillers comments echo those of a group of retail experts who last month said that the government’s ability to prevent inflation and the price level from falling will be “inextricably linked to the continued existence of retailing.”
According to the Malliers survey, only 34 percent of respondents support the elimination, reorganization or elimination of government subsidies for retailing companies.
According a recent report from the Federal Deposit Insurance Corporation, which regulates banks, nearly two-thirds of banks are in a position to impose the kind of restrictions that Trump has proposed, and over half of those banks “are already restricting lending to retail investors or limiting their investment in retail businesses.”
Malls Association President Shiller also suggested that retailers are losing confidence in Trump because he has threatened to close stores and cut off federal payments to retailers.
“I would imagine that his advisers are trying not to make the same mistake that the other presidents did and the last one did,” Shills said.
“I think that they’re trying to protect their own businesses, and their own stores, and the jobs that they depend on.”