Government Businesss Regulations, Pointless Laws, Stupid Rules– Run Amok: Destroying Small Business…

Government seemingly has an insatiable appetite to develop non-solutions to non-problems through– more business regulations, more laws, more pages to the tax code… People love to laugh at the ridiculous– business regulations, rules, laws, absurdities, red tape… that governs how business is done but it’s not a laughing matter…

According to a ‘Competitive Enterprise Institute’ (CEI) report; regulation cost U.S. economy $1.882 Trillion in 2015– this amount is larger than the entire GDP of all but 11 countries in the entire world… whereas official government estimates done by ‘Office of Management and Budget’ puts the cost more in hundreds-of-billions range…

So whether it’s trillions or hundreds of billions the cost for complying with federal regulations is a huge burden on the economy, business, and the consumer who ultimately pays for it… Government has created a massive vegetative, unproductive universe of workers dedicated to dealing with federal regulations, rules, laws…

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In addition to federal government, state and local governments also apply regulations on business… the result is that business (especially small business) spend much of their resources dealing with– lawyers, accountants, consultants… just to comply with absurd government regulations… The problem is the big guys (corporations) and not the little guys (small business) are the ones that can afford to hire lobbyists and schmooze with special interest groups to negotiate the rules with the unelected vegetative bureaucracy. Which brings to mind saying; ‘if you are not at the table, you are on the menu’…

According to Competitive Enterprise Institute; the number of regulations are so large they become almost meaningless, e.g.; there are over one million federal regulation restrictions; over 175,000 pages in the ‘Code of Federal Regulations’… and these do not include; state and local regulations… Government regulations are major obstruction for start-ups and development of small business… and politicians must begin to re-evaluate the ‘state of regulations’ on business– it’s a matter of economic life or death…

In the article Rising Business Regulations Driving Down Business Formation by Scott Shane writes: Small business is increasingly frustrated by government regulation, which has become a major problem in recent years. Twenty-two percent of small business owners surveyed by National Federation of Independent Business say; government regulation and red tape is the most important issue that they face… next to the over-whelming burden of taxes– federal, state, local taxes…

Moreover researchers at think tanks suggest that government regulations are doing more than just causing entrepreneurs to gripe; they are finding that rising regulations are keeping would-be entrepreneurs from starting companies. Over past three-and-a-half decades federal regulations have been rising, while new business creations have been falling… and researchers believe the pattern is more than a coincidence…

Correlation doesn’t imply causation, of course; but researchers have several reasons to believe that rising regulation is deterring entrepreneurship… According to Jonathan Ortmans; the more regulations increase; the more complexity there is in operating a business… and that deters many people from starting them…

According to Anthony Kim; rising cost of regulations makes many entrepreneurial ventures unfeasible… and that causes start-up rates to decline… Moreover regulatory compliance often has a high fixed cost, and for small business that means they face higher percentage cost for complying with regulations… There is evidence– more regulations hinders entrepreneurial activity…

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In the article Control Freaks Are Killing Business With Ridiculous Business Regulations by Michael Snyder writes: The control freaks are winning and they are absolutely killing the country… For some reason, the political system tends to attract psychotic control freaks that want to micro-manage the way people run their businesses and actually dictate–how, when, where… business should make decisions.

These control freaks are convinced that freedom and liberty are ‘dangerous’ and there should be– rules, regulations for just about everything. This is not just happening on the federal level either; the truth is that the control freaks are often worst at local level. When you add-up the red tape at all levels of government, you literally have millions of laws, rules, regulations… All the red tape is suffocating business and destroying the economy…

In the article More Government Business Regulations, Not Less by David Macaray writes: The argument ‘against’ government regulations goes something like: Most regulations are confusing, cumbersome, expensive, inefficient, vaguely ‘unconstitutional’, ultimately counter-productive… and they destroy businesses.

The argument in ‘favor’ of regulations goes something like: The promoters of minimal regulations are believers in the so-called ‘self-policing’ doctrine and these ‘do what you want’ zealots are a danger to society… Without regulations many in the private sector would act with unrestrained greed to– exploit, steal, lie, rob, cheat, and devastate the public sector in order to enrich itself with no regard for the well-being of the population…

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In the article Business Regulations Run Amok by Bob MacDonald writes: Regulations are a reaction to past bad actions that try to anticipate future bad actions… The concept of regulating malfeasance is as old as– biblical Moses, and it started when God personally handed Moses the ‘Ten Commandments’. (There is suspicion that God actually gave Moses 20 commandments, but lobbyists and special interest groups persuaded Moses to drop 10 of them.) A research survey by the University of Michigan (funded, of course, by a federal grant), determined that there are now enough regulations on the books for every one of some seven billion people living on earth to have 734.6 regulations of their very own…

This leads to the most logical question of all; If regulations don’t work, then why even have them? Unfortunately the answer is that without regulations, business would be a chaotic mess… The truth of the matter is that regulations are needed and they do work; they just don’t work to the level of perfection intended, because the world is not perfect. This frustrates those who seek a mandated perfect world and irritates those who believe an unfettered free-market is perfect world… By their very nature regulations are a prime target for those who believe the essence of freedom is unrestrained activity. Many see regulations as a sinister conspiracy on the part of government to limit freedom…

Others see regulations as a magical way to assure and safeguard freedom of activity for all… As result of this schizophrenic attitude, government regulations have become an easier whipping boy– for both the left and the right… There is no magical solution when it comes to dealing with regulations; the nature of regulation creates conflict… However, there is a more reasonable approach to regulation that would moderate some of the dynamic tension created by those who view any regulation as too much, and those who believe the answer to any malfeasance is more regulation…

The objective of regulation should not be to legislate morality, or anticipate the bad things people can think to do, or decide what is best for people… these idealism simply do not work. The purpose of regulation should be to create a– transparent, level playing field for all. Regulations should not decide– what can or cannot be done, but they can be designed so that everyone knows what everyone is doing… An approach that offers the freedom to do what one wants to do, while giving others the freedom to decide what they believe is best for them…

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Unfortunately, the simple philosophy of regulations designed to create a level playing field is not likely to catch on… Because there will always be constituencies that want more regulation, just as there will always been those who favor less… And politicians are smart enough to know that the safe re-election position is to appeal to ‘the base’… And to change existing philosophy of regulations deprive bureaucratic regulators of the power to decide what is best for all people…

It’s unfortunate, but until a fresh approach to the ‘objective of regulation’ is adopted… and no matter how voluminous or detailed regulations may be– the ‘muckers’ who want to run-amok will be able to do so, and the other ‘less-muckers’ are left to deal with the muck…