Subscribe
RSS
Mobile
I guess we were supposed to be encouraged last week when the regulator-in-chief pulled out his plastic preschool scissors while promising to cut the government down to size. "The government we have is not the government we need," Obama announced to a group of business owners at the White House on January 13, 2011. Obama promised he'd snip off a scant $3 billion over the next ten years -- in exchange for just a little more power.
Given the increase in the size of government since Obama took office, he'll need an earth mover to make any real difference. Next week he'll be selling snake oil in the Rose Garden to reduce the deficit. There are many areas in government to cut, chief among them are excessive regulations, which are choking the life out of small businesses in this country. The Obama administration cannot be part of the problem and the solution at the same time.
Awhile back, my brother Pete decided to chase his version of the American dream. He did his homework; purchased quality used equipment via the internet, and signed a lease — in hopes of opening a small mom and pop style yogurt shop near Charleston, S.C. He's a smart businessman, who tries to calculate his decisions carefully. Nonetheless, it wasn't long before he found himself tangled in a web of regulatory red tape. He was told he needed to purchase environmentally friendly grease trap equipment, although no frying is involved in serving non-fat yogurt. It didn't stop there. Additional environmental requirements like the installation of specialized wastewater drains, and tens of thousands of dollars for more unessential equipment left him watching his hopes of the American dream go down the drain, along with any hopes of hiring new people should his business succeed.
My brother is not alone; his experience has become all too common in the Obama administration's new regulatory normal. South Carolina's Nikki Haley said it best when she recently told Fox News' Sean Hannity, "I need a partner in the White House." Haley claimed the hardest thing about her job had been the federal government intrusion into South Carolina's business. Though she was a Tea Party favorite, Haley endorsed presidential hopeful Mitt Romney. She said Romney promised to keep the federal government out of South Carolina's way, so it can create jobs.
My brother's experience, along with the Department of Labor's January 7, 2012 unemployment report showing an increase in unemployment by 24,000 over the last week makes it quite clear increased regulation is making matters worse. Over-regulation has turned the country once hailed as the Land of Opportunity into a place where opportunity only happens in your dreams.
According to a July 25, 2011 Heritage Foundation article titled "Red Tape Rising: A 2011 Mid-Year Report," the Obama administration has enacted "75 new major regulations from January 2009 to mid-FY 2011, with annual costs of $38 billion." Between October 1, 2010 and March 21, 2011, the administration completed 1827 "rulemaking proceedings," environmental and otherwise, some of which will directly affect private sector start-ups.
The Heritage report found that Obama has outdone his predecessors in that "no other president has burdened businesses and individuals with a higher number and larger cost of regulations in a comparable time period."
And the worst is yet to come when you look at the job-killing, business-quelling regulations under Obamacare's 159 new government offices and programs, the EPA's seven new environmental regulations that will cost businesses $38 billion annually, in addition to compliance costs of $100 billion, and the 2400-page Dodd-Frank bill the Harvard Business Law Review cites as "the most significant regulatory overhaul since the New Deal."
The cost of overregulation is compounding exponentially, and in the process, is destroying the Land of Opportunity, dream by dream.
But don't just take my word for it, ask my brother.
-----
Susan Stamper Brown is an opinion page columnist, motivational speaker and military advocate who writes about politics, the military, the economy and culture. Reach Susan at susan @susanstamperbrown.com, her Web site www.susanstamberbrown.com and Facebook.
January 17, 2012 @ 10:02 am
I have found similar problems in Wisconsin, Michigan, Ohio, and most recently Utah. All I want to do is run my own business, a bookstore and web cafe which sells snacks and coffee. Simple, easy business model, successful to. But the start up costs, inability to obtain financing unless I have been in business successfully for three years, and the incredible amount of red tape, continues to put this out of reach.
The regulations from the Federal Government have pushed many of my friends either out of business or shelved their dreams for opening a business. This is not whining, crying, or complaining. Eventually, I will find a way to become a business owner.
January 17, 2012 @ 3:27 pm
What red tape are you facing?
You want people to give you a loan even though you don’t have any experience? Also, it sounds like you don’t have any capital.
That’s not red tape it’s common sense. Do you have a business plan? Have you looked for any mentor programs that feature retired executives who can evaluate what you are trying to do and help lead you down the path to success?
January 18, 2012 @ 11:40 am
CRZYUSA,
Everything you have suggested I am and continue to look at. Have a business plan, have VA small business loan opportunities, know many non-profit mentor groups for small businesses, still find the red tape onerous at best.
It simply amazes me at how much legal red tape must be shoveled just to open the doors and the new EPA actions will only make things worse.
January 17, 2012 @ 11:01 am
His Excellency Obama is dedicated to killing the economy of the United States, reducing us all to ‘equals’, all dependent on the Federal Government. A sociaty controlled by the educated elite who have been studying the books of the socialists who have never created the Utopia they all say they PLAN for. Unfortunately, human beings not fit well into planned societies. They either say, ‘why should I work if the pay is the same, or they say ‘I’ve had enough of this ****’ and rebel.
Everything about our nation is under attack. Our Constitution, our economic standards, our education, our very way of life.
Once more, THIS COMING PRESIDENTIAL ELECTION IS THE MOST SERIOUS IN THE HISTORY OF THE COUNTRY SINCE THE WRITING OF THE CONSTITUTION ITSELF.
GO SHOUT IT ON THE MOUNTAN TOPS AND STREET CORNERS!
January 17, 2012 @ 1:07 pm
This article is a perfect case study for the Republicans running for office to
use in their campaigns. It clearly illustrates how intrusive the government has become over the years .
January 17, 2012 @ 3:35 pm
I don’t know the specifics on the author’s brother’s situation but this argument smells like bull pucky.
A quick google search reveals the document dealing with this:
“It is the intent of this Charleston CPW Grease Trap
standards for grease trap location, design, installation,
maintenance of new and existing grease interceptors
discharge standards. It should be noted that failure to
considered violations of applicable sections of the existing
Resolutions and consequently, subject to applicable
discontinuance of water and/or sewer service.”
Here’s where the information came from:http://www.charlestonwater.com/downloads/engineer_downloads/grease_trap_standards_2009.pdf
CPW standards for Charleston Public Works. Sounds to me like Charleston is the problem. I’m not saying that there isn’t over regulation but when weak arguments are made it doesn’t help further the point.
January 17, 2012 @ 5:32 pm
Businesses are having to spend too much time and resources addressing compliance and government regulated bureaucracies. These hours are non-productive and cause their prices to go up to make up the costs of doing bs work.
January 18, 2012 @ 9:03 am
Which regulations? American workers are far and away the most productive in the world.
The Federal regs that I have to deal with on a daily basis were annoying at first, but upon implementation of policies and procedures are generally an afterthought.
January 17, 2012 @ 6:43 pm
I can back up that statement. Many years ago, I started a construction business in Southern California. If I was building a fence for example and had a business license for that city and the fence or any construction went across the border into the neighboring town, I was required to get a new business permit for that town also with different building codes. Then I was attacked by the county, state and each city for extra taxes.There was so much bookwork, I could spend little time securing new jobs so I had to throw in the towel
January 18, 2012 @ 9:06 am
No, that doesn’t back up the point the author was making. All of the regulations that you dealt with are local. There are two ways to deal with local regulations. Get them changed or move to or do business in areas more friendly to your way of life/school of thought.
January 17, 2012 @ 7:17 pm
The EPA regulations will help America kiss away any hope of job creation! I heard Haley make the comment Brown mentioned.
January 23, 2012 @ 9:40 pm
As more regulations seem to surface, they are creating a more stringent environment for us to conduct business in. Mainly the regulatory costs are what’s getting in our way. More often than not the expense of the costs of compliance with new regulations force many businesses to either close or cut a significant number of jobs which affects a number of blue collar and middle class workers in the process (http://eng.am/sTM3nH). At a time when jobs are already scarce we can’t really afford to keep cutting jobs in places where we really need people to work. So what can we do to see to it that we protect ourselves and help people to keep their jobs at the same time?