• WisBusiness

Tuesday, November 1, 2011

Think tanks should think twice about regs' impact on small firms

By Dan Danner
The nation's normally optimistic small-business owners are struggling to hang onto their high hopes for better days. Even though fewer customers are dropping in and sales are weakening, these risk-takers still cling to their vision of the American dream.

They are doing everything they can to succeed and maintain their business in this tough economy. But they are also frustrated that Washington is ignoring the single biggest preventable obstacle to their growth: government regulations.

Behind the sluggish economy, government regulations are the biggest problem hampering small businesses today, according to a monthly survey by the National Federation of Independent Business. That research is backed up by a Gallup survey published recently which shows regulations are the number one problem facing small businesses right now. Around one-in-five small-business owners say it's the single biggest problem they face.

Why, they ask, is the barrage of useless rules and bureaucratic requirements increasing at a time when common sense calls for just the opposite? Why make things worse for those who have a proven record of strengthening the nation's financial backbone?

Their questions have gone unanswered. Worse yet, some Washington think-tanks have begun to assert, in the face of volumes of research on the subject proving otherwise, that regulations really aren't a problem. And the White House has started singing the same tune.

Despite the substantial number of small-business owners who claim regulations are the biggest obstacles to growth, liberal economists seized upon the evidence that a greater number--28 percent—had pointed to poor sales as their biggest headache. Thus, in their logic, regulations and red tape cause no injuries.

I would encourage the so-called experts at Washington think-tanks, as well as the folks living at 1600 Pennsylvania Avenue, to pay a visit to a few small businesses. Ask them what's costing them money that they could be reinvesting in their business. I am willing to bet the high cost of complying with government regulations would be high on the list.

We already know that this is wishful thinking. The culture of denial in Washington over the costs of government regulation continues. The one person in Washington, who could shut down the regulatory machine, won't. In a recent press conference, President Obama displayed his faith in big government and aggressive regulation by asking: "Does anybody really think that [reducing regulation] is going to create jobs right now and meet the challenges of a global economy that ... is weakening with all these forces coming into play?"

The president should take a closer look at the impact his policies are having on the economy. And he should stop 4,226 new rules in the federal pipeline before even more harm can be inflicted upon small businesses. These firms have already suffered a 60 percent increase in major regulations—those costing the economy $100 million or more—since 2005.

Small businesses have grown accustomed to Washington's failure to deliver on its promises, but they're determined to survive and someday succeed. What they don't understand is why the government seems determined to make it harder for them to help lift the economy and create jobs.

Virtually everyone on Main Street can see the solution, but no one in the White House appears to even understand the problem, let alone offer an idea of how to solve it.

The problem can be stated in simple terms: excessive government regulation wounds small businesses. The solution is just as simple: reduce regulation, give entrepreneurs a break.

-- Danner is president and CEO of the National Federation of Independent Business, which represents 350,000 small-business owners in Washington, D.C. and every state capitol.


Comments: 5

At March 5, 2016 at 10:00 AM, Blogger Mary Green said...

If you know the best resume writers reviews, I think tat you know all the nusances of their work and could recommend the best one for you. Please share it with me and others.

At April 3, 2017 at 1:59 AM, Blogger Regina Hilary said...

Thanks for sharing your info. I really appreciate your efforts and I will be waiting for your further write.
Thanks for sharing !
tanki online 2 | 2048 game online

At September 6, 2017 at 6:45 AM, Blogger Assignment Help said...

Took me time to read all the comments, but I really enjoyed the article.
Business Law Assignment Help

At September 22, 2017 at 4:17 AM, Blogger amara zoe said...

Thnaks for sharing...Assignment Help

At October 20, 2017 at 12:39 AM, Blogger Furnish My Place said...

Kas Rugs
We provide all kind of best rugs online in USA.
We deals in Kaleen Rugs, Dalyn Rugs, Colonial Mills, Nourison Rugs, Rizzy Rugs, Karastan Rugs, Momeni Rugs, Rugs America, Kas Rugs, Transocean Rugs, Chandra Rugs.


Post a Comment

Back to BizOpinion main page

: See newer blog items : : See older blog items :

BizOpinion site feed

wisbusiness.com Social News

Follow Us

Site Sponsors


· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications