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Cramer on small business: Trump has a big change coming, and no one is talking about it

Jim Cramer can't speak for the American public, but he knows many business owners are sick and tired of Washington getting in the way.

They are tired of complicated new rules, changes to health care policy and taxes that make them want to export jobs overseas to produce goods more cheaply. These rules have caused them to fear expanding business entirely in some cases.

"The stocks of small capitalization companies are rallying because these companies are the ones that can least afford the endless rules and regulations that the Obama administration has put out," the "Mad Money" host said.





Small business with American flag
Richard Cummins | Getty Images
"A businessman in the White House who built his career on expanding isn't suddenly going to change his stripes." -Jim Cramer

For the past eight years, small business growth slowed because the federal government was focused on protecting workers, the environment and consumers, even if it meant less job growth in the long run.

Hence, with Donald Trump's surprising victory, small cap stocks have rallied on the bet that he will be more relaxed, or make the government get out of the way of business.

Cramer understood why President Barack Obama took the actions he did. He took over during the financial crisis that was partially caused by the Bush administrations laissez-faire attitude toward regulation, Cramer said. Obama wanted to fix the many things that went wrong, which led to new regulations and rules.

"The problem is, these regulations also made it harder for business to grow, and growth is what makes capitalism work better for everybody. So, the fact that we are about to get a wave of deregulation is good news for the stock market," Cramer said.

The problem is, not enough people are talking about it.

"A businessman in the White House who built his career on expanding isn't suddenly going to change his stripes."


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