Tags: Immelt | regulations | business | General Electric

GE CEO Immelt: Regulations Impose Hardships on Business

By    |   Tuesday, 12 March 2013 07:50 AM

One of the biggest problems General Electric and other U.S. businesses have to deal with now is regulations, says GE CEO Jeffrey Immelt.

“The amount of regulation tends to grow during periods of fiscal strain, and we are certainly seeing that in the U.S. The number of ‘major regulations’ — regulations with more than $100 million in impact — has exploded in the last few years,” he writes in the company’s annual letter to shareholders.

Those regulations have thrown up an obstacle for business, Immelt writes. “Until we solve for these constraints, it is hard to see that the U.S. will return to its full growth potential.”

Video:
Economist Predicts 'Unthinkable' for 2013

In the past, GE had to worry about risks overseas. But now, “the major source of volatility in corporate planning is the U.S., something I never thought I would see,” Immelt says.

“We would all like to believe that the U.S. will continue at a steady rate of 3 to 4 percent [gross domestic product] growth, as we saw in the 30 years before the global financial crisis. However, the U.S. faces more major political storms this year.”

Those storms include the fiscal mess, the debt-limit debate and tax reform, he notes. “We fear that this uncertainty will impact capital investment.”

Others are concerned about regulation too. “[There] is an incredible array of new regulations,” Jack Welch, Immelt’s predecessor, tells CNBC.

The Obama administration has proposed 1,200 regulations, he says. That’s five times the total of the George W. Bush administration in its first four years and 3 ½ times the Clinton administration’s total for its first term, Welch explains.

If the government can ever cut companies a break on the regulatory front, the economy can grow a lot more strongly, Welch maintains. “This economy is really ready to go.”

Video: Economist Predicts 'Unthinkable' for 2013

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Economy
One of the biggest problems General Electric and other U.S. businesses have to deal with now is regulations, says GE CEO Jeffrey Immelt.
Immelt,regulations,business,General Electric
307
2013-50-12
Tuesday, 12 March 2013 07:50 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved