Gov't Regulations Top Small-Business Owners' Problem List: 1 in 3 small-business owners worried about going out of business

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    Oct 25, 2011 1:48 PM GMT
    Not surprised. The problem in particular is the additional regulations being placed that also reduces the incentives to start new businesses or for existing businesses to compete in new markets. Research shows that jobs get created primarily by new businesses.

    http://www.gallup.com/poll/150287/Gov-Regulations-Top-Small-Business-Owners-Problem-List.aspx

    PRINCETON, NJ -- Small-business owners in the United States are most likely to say complying with government regulations (22%) is the most important problem facing them today, followed by consumer confidence in the economy (15%) and lack of consumer demand (12%).

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    Rounding out small-business owners' top five problems in the Oct. 3-6 Wells Fargo/Gallup Small Business Index poll is lack of credit at 10% and poor leadership by government and the president at 9%.

    Looking ahead to 2012, approximately one in three small-business owners say they are very or moderately worried about going out of business. About the same number are worried about not being able to compete with large or global competitors, not being able to hire the number of employees they need, and not being able to pay their employees. Thirty percent worry they will have to reduce their number of employees.
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    Oct 25, 2011 2:04 PM GMT
    And yet there's almost no truth to the meme that regulations in the US are particularly onerous:


    Forbes.comWith the economies of the U.S. and Europe sputtering along on fumes, politicians are quick to blame regulation and taxation as the main cause of a lackluster business environment. Yet, according to the World Bank’s 212 page “Doing Business 2012″ report, released on Wednesday, there is less red tape for setting up shop in the U.S. than there is in all of Europe, Latin America, Africa and most of Asia.

    Where does the supposed regulation and taxation crippled U.S. stand in the rankings? It is number four, trailing behind New Zealand (3), Hong Kong (2) and Singapore (1).

    What it looks like from the research desks at one of the most powerful and elite multilateral institutions on the planet is a U.S. that does not have the government in its way, but a U.S. whose government is more out of the way than it is in every other major economy on earth, including mainland China.

    An economy’s ranking on the ease of doing business does not tell the whole story about its business environment. The underlying indicators do not account for all factors important to doing business, such as macroeconomic conditions, market size, workforce skills and security,all factors where the U.S. would outperform the three countries that are ahead of it in the rankings.

    What the rankings of the World Bank do examine are the key aspects of the regulatory and institutional environment that matter
    for companies. The top 20 economies on the list have implemented effective, yet streamlined procedures for regulatory processes such as starting a business and dealing with construction permits as well as strong legal protections of property rights. They also periodically review and update business regulations as part of a broader competitiveness agenda and take advantage of new technologies through e-government initiatives, the World Bank says.

    According to the study, the U.S. is No. 1 in large advanced economies for simple regulations and a general low cost of doing business, contrary to what many politicians say about what troubles the U.S. economy.




    http://www.forbes.com/sites/kenrapoza/2011/10/20/us-businesses-not-being-strangled-by-regulation-and-taxation-world-bank-says/
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    Oct 25, 2011 2:04 PM GMT
    Regulate regulate regulate...
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    Oct 25, 2011 2:21 PM GMT
    Only 7% were concerned about CASH FLOW........

    ......while 22% were fretting over Gov't Regulations.

    That means that NINETY THREE PERCENT of these business owners aren't paying attention to their most important issue: IT'S ALWAYS ABOUT CA$H FLOW !!!! ALWAYS. On the bright side, if so few are mentioning cash flow, they are obviously feeling some confidence in their own ability to manage the market as it is.

    About GOV'T REGULATIONS: Can you name any regulations created under the Obama administration ...........new ones that didn't exist under Bush?

    FoxNews and Rush Limbaugh are warning business people to

    "DON'T WAIT......WORRY NOW.......Regulations are on the way......Oh Yeah, and He's Coming for Your GUNS! "

    So it doesn't surprise me that many on the Right are in a panic. LOOK at what you guys are feeding each other.

    Smarter business people, Left or Right, don't listen a lot to the negativity.

    Cautious Optimism is more powerful and will yield better results than what the Right Wing is trying to sell these days.

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    Oct 25, 2011 3:15 PM GMT
    Jobs are moving from Silicon Valley to Washington. From people who actually create ideas and value to those who destroy them.

    Related here:
    http://truthonthemarket.com/2011/10/20/where-the-jobs-are/

    The rise of Washington vis a vis Silicon Valley is a trenchant commentary on modern life.


    Well, yeah.

    And Christian - it's relative. The US has enjoyed higher levels of employment persistently relative to its western allies because of its level of regulations, and tax burden. But as the US moves backwards, is it any wonder that there are greater losses in jobs and reduced economic activity? That minimum wage is higher, the increased regulatory burden from things like healthcare (that the doingbusiness,org does not measure). It also doesn't measure prospective tax rates/regulatory issues which are the issue.
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    Oct 25, 2011 3:20 PM GMT
    FEAR OF

    " prospective tax rates/regulatory issues which are the issue. "

    IS THE ISSUE !

    But the reality??? What changes since the Bush Administration???


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    Oct 25, 2011 3:24 PM GMT
    PresentMind saidFEAR OF

    " prospective tax rates/regulatory issues which are the issue. "

    IS THE ISSUE !

    But the reality??? What changes since the Bush Administration???




    http://whatthefuckhasobamadonesofar.com/ - in particular the healthcare reform act which is heavily back end loaded. Let's also not forget the anticipated burdens in entitlement spending - most business people or practically anyone who follows the issue recognizes taxes are almost certainly going to rise.
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    Oct 25, 2011 7:46 PM GMT
    Related: http://www.heritage.org/index/topten

    It's sort of remarkable that Canada has surpassed the US over the last few years in economic freedom which is more policy based than the doingbusiness.org index - but both are useful indices.

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    Oct 25, 2011 8:49 PM GMT
    southbeach1500 said1 in 3 small-business owners worried about going out of business

    That's part of Mr. Obama's "fundamental transformation of America." icon_wink.gif



    I don't think many people recognize the costs of flawed regulation or how it affects the decisions businesses make - or rather distract from serving customers.
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    Oct 25, 2011 9:36 PM GMT
    Related - what regulation matters.

    http://www.heritage.org/research/reports/2011/07/red-tape-rising-a-2011-mid-year-report

    Following a record year of rulemaking, the Obama Administration is continuing to unleash more costly red tape. In the first six months of the 2011 fiscal year, 15 major regulations were issued, with annual costs exceeding $5.8 billion and one-time implementation costs approaching $6.5 billion. No major rulemaking actions were taken to reduce regulatory burdens during this period. Overall, the Obama Administration imposed 75 new major regulations from January 2009 to mid-FY 2011, with annual costs of $38 billion. There were only six major deregulatory actions during that time, with reported savings of just $1.5 billion. This flood of red tape will undoubtedly persist, as hundreds of new regulations stemming from the vast Dodd–Frank financial regulation law, Obamacare, and the EPA’s global warming crusade advance through the regulatory pipeline—all of which further weakens an anemic economy and job creation, while undermining Americans’ fundamental freedoms. Action by Congress as well as the President to stem this regulatory surge is essential.


    Example of tangible costs here with rent control. In 2003, a Manhattan Institute estimated the average cost of rent control was $200 per apartment - which means that without rent control, the cost of renting at that time would have been $200 less on average:

    http://www.economist.com/node/1826620

    It is hard to find any economist who supports rent restraints. Price controls, even if laboriously tweaked, inevitably produce inefficiencies, reduce supply and cause bad side-effects. Black markets and bribery thrive. Building maintenance is often ignored. Landlords and tenants find themselves in poisonous relationships, since they are linked by law rather than by voluntarily renewable contracts. Unscrupulous property owners go to dangerous lengths to evict tenants in order to get higher-paying replacements; as a result, tenant-protection laws have been enacted that make it almost impossible to evict even a scoundrel.

    Meanwhile, a vast bureaucracy has grown up to administer the price controls, supported by volunteers and litigators. The property owner who misses a filing deadline, or has his paperwork mislaid, can be blocked from even permissible rent increases. Given all this, most sane New Yorkers would rather eat their money than join the rentier class.


    For specific regulations that are destroying jobs:

    http://www.nationalreview.com/articles/275797/ten-job-destroying-regulations-andrew-stiles

    NLRB’S BOEING COMPLAINT
    In April, the National Labor Relations Board’s general counsel issued a complaint against the Boeing company challenging the airline manufacturer’s decision to open a new plant in South Carolina, a right-to-work state. The general counsel claims the move was an unlawful “retaliation” against the unionized workforce at Boeing’s existing plant in Washington State. Despite the fact that no union workers have lost their jobs as a result of the decision, the NLRB is seeking a “restoration order” against Boeing that would force a return to the status quo ante, giving unions the ability to bargain for a new plant in Washington. Meanwhile, Boeing has already invested some $2 billion in the South Carolina plant and created more than 2,000 jobs, all of which has been put at risk by the NLRB’s actions. Because Boeing will now have to spend millions defending itself in court, the ruling is likely to deter future investment and job creation across the country. Freshman Rep. Tim Scott (R., S.C.) has sponsored the Protecting Jobs from Government Interference Act, which would stop the complaint from proceeding. The House plans to vote on the bill shortly after they return in September.

    MACT AND CSAPR UTILITY STANDARDS
    The Obama administration has proposed new maximum-achievable-control-technology (MACT) standards and a cross-state air-pollution rule (CSAPR) for utility plants that will have a direct impact on utilities prices across the country. The new rules will affect more that 1,000 fossil-fuel-fired power plants, a number of which will likely be forced to shut down. As a result, Americans in many parts of the country could find themselves paying anywhere from 12 to 24 percent more for electricity. The House will vote next month on the Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act, sponsored by Rep. John Sullivan (R., Okla.), which would mandate a cumulative economic analysis for regulations proposed by the Environmental Protection Agency (EPA) and delay implementation of the new utility standards until the full impact of the administration’s regulatory agenda can be sufficiently analyzed.


    BOILER MACT RULES
    The EPA’s new “boiler MACT” rules would impose stricter emissions standards for some 200,000 commercial, institutional, and industrial boilers nationwide, and stand to dramatically impact the thousands of American businesses — from hospitals to factories to universities — that use them. EPA officials estimated the cost of the new rules at about $10 billion, though others predict the true cost will be almost double that figure. The U.S. Small Business Administration warned that the rules would cause “significant new regulatory costs” for businesses, institutions, and municipalities across the country, with the American forest and paper industry alone expected to see an additional burden of at least $5–7 billion in new capital and compliance costs. A U.S. Commerce Department analysis predicted job losses of up to 60,000 as a result of the stricter requirements — much greater than the EPA had initially claimed — while some estimates put the job loss figure at closer to 200,000. The EPA Regulatory Relief Act, sponsored by Rep. Morgan Griffith (R., Va.), would impose a stay on four related EPA regulations issued earlier this year and give the agency more time to issue new, less onerous rules. The House will vote on the bill in early October.


    It really is depressing.

    In related news:

    http://www.huffingtonpost.com/2011/10/25/farm-dust-regulation-gop-bill_n_1031215.html

    http://blogs.desmoinesregister.com/dmr/index.php/2011/10/25/democrats-republicans-spar-over-farm-dust/
  • Posted by a hidden member.
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    Oct 25, 2011 9:47 PM GMT
    I love how you guys just plow forward in the absence of any actual data to support your wild ideological claims. icon_lol.gif
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    Oct 25, 2011 9:51 PM GMT
    Christian73 saidI love how you guys just plow forward in the absence of any actual data to support your wild ideological claims. icon_lol.gif


    Lol - yep, no data at all icon_rolleyes.gif . I suppose your response isn't terribly surprising given the industry you're in - dependent on the value that others create. icon_wink.gif
  • Koaa2

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    Oct 25, 2011 10:23 PM GMT
    Off course business is against any regulation, so they can fuck the average person as many times as possible. I think there should be more regulation, and if there had been, we wouldn't be in the mess we are in right now, and many people wouldn't have been hurt by the big corporate assholes!
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    Oct 25, 2011 10:27 PM GMT
    Koaa2 saidOff course business is against any regulation, so they can fuck the average person as many times as possible. I think there should be more regulation, and if there had been, we wouldn't be in the mess we are in right now, and many people wouldn't have been hurt by the big corporate assholes!


    Lol - wow - how remarkably devoid of any sort of historical/economic context you are. Views like this generally only come from those who have no conceptual understanding of what people who run businesses go through in order to serve their customers - not to mention live off the resources of others instead of creating them.
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    Oct 25, 2011 11:19 PM GMT
    riddler, YOU ARE LECTURING on

    " what people who run businesses go through in order to serve their customers"

    ARE YOU KIDDING?

    Writing about business in online forums IS NOT like actually running a business. Do you understand?

    I HAVE A SURPRISE FOR YOU: It's actually considerably easier to start and operate a business in America than you Right Wing Defeatists like to believe.

    IF you guys would stop frightening yourselves into paralysis, you might find success in business.

    The First Step: STOP WHINING !
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    Oct 25, 2011 11:20 PM GMT
    I run a small business and I continue to be baffled by the assertion that over-regulation is interfering with our ability to make money. And I say that from New York State, which is not exactly famous for a low-level of government activity.

    I recognize that certain fields such as manufacturing may experience things very differently than we do in retail. But in the twenty years that I have been involved here, there has not been a single regulation imposed by an administration of any stripe which has significantly affected our ability to do business.

    Obviously, the fear is out there and I can't deny it exists. But we're doing our damndest to keep making money and we don't have any reason to stop.
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    Oct 25, 2011 11:27 PM GMT
    #1 reason small businesses fail is the owner doesnt show up to work
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    Oct 25, 2011 11:29 PM GMT
    riddler78 said
    Christian73 saidI love how you guys just plow forward in the absence of any actual data to support your wild ideological claims. icon_lol.gif


    Lol - yep, no data at all icon_rolleyes.gif . I suppose your response isn't terribly surprising given the industry you're in - dependent on the value that others create. icon_wink.gif


    There is no issue with taxation or regulation "crippling business" when we're number four in the world in the combination of low taxes and least regulation.

    I know your ideology sees any regulation as an impediment to the John Galts but it's just not backed up by the facts. icon_lol.gif

    And my work creates actual "value" - children educated, people fed, environments cleansed of pollution - by channeling resources where they're most needed not where the greatest profit can be made. icon_rolleyes.gif
  • nanidesukedo

    Posts: 1036

    Oct 25, 2011 11:32 PM GMT
    I'd just like to point out how I find it interesting that the data can be interpreted differently depending on what side of the aisle you stand:

    http://www.realjock.com/gayforums/1906011
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    Oct 25, 2011 11:37 PM GMT
    catfish5 said#1 reason small businesses fail is the owner doesnt show up to work


    Because they are spending all their time online GIVING BUSINESS WARNINGS.

    Riddler claimed once that he was starting TWO INTERNATIONAL BUSINESSES.

    VERY Impressive but sadly VERY UNLIKELY.

    At least from my experience of starting and operating businesses for over 30 years.......and knowing many other business folks,

    NO ONE HAS THE TIME FOR POSTING BS while focused on getting work done.

    When it's your business, you learn to focus.
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    Oct 25, 2011 11:37 PM GMT
    southbeach1500 said
    Christian73 said
    There is no issue with taxation or regulation "crippling business" when we're number four in the world in the combination of low taxes and least regulation.


    Japan has the highest corporate tax rates, USA is #2.

    Where are you getting your "least regulations" stats sorted by country?


    From the World Bank's 2012 "Doing Business" Report available above. And in a country where GE, Google and heaven knows how many more companies pay zero corporate income tax or get rebates, the statutory rate is a joke.
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    Oct 25, 2011 11:38 PM GMT
    So far I haven't read any real answers to the questioning about differences in regulations between now and when Bush was in Power. There has been a reference to Obama's health insurance program, but from what I understand there aren't many changes from that program as of now and that is an unlikely excuse.

    In republican politics particularly, we have a wide use of propaganda tactics to keep stating whatever propaganda they deam workable to win votes, then repeat that propaganda often. Soon that propaganda becomes true in the minds of the sheeple who are mere followers and study nothing out for themselves.

    Keep in mind that what has been passed as 'small business' often is far from it, it is big corps like the Koch Bro's paying for the repetition of these propaganda tactics, one of the most successfull of which, has been this mantra about small business not expanding and not hiring because they are in doubt about future regualtions and taxes. These corps. spreading this propaganda have a lot of money to spend to make believers of those hearing their self promoting propaganda, since they bought legislation that gives them more and more money to spend on such propaganda. While the public who don't have jobs because their jobs were sent overseas because of the above system, are not getting their messages heard, much less repeated.

    What a system !!! the corps. have nearly endless funds to come up with polls, graphs and to pay for talking heads on Cable News as well as owning the media that spreads its propaganda. Repeat it enough over an election cycle and Walla !!! its the facts that voters go by, whether true or not. No I don't have any graphs or polls to prove the above, but I can read and see whats happening in our US system of endless election cycles where truth is what it hard to find and well hidden behind well funded propaganda such as what Riddler quotes.


    As for the most serious aspect of this poll, that of going out of business, the problem is the unfortunate result of such a severe recession brought on primarily by actions of Banks and Wall street, not regulations. Its a known fact that if controls/regulations had been in place and inforced , that the economic crash could have been largely avoided.

    There's so many holes in this 'blame the regulations' theory that its laughable.
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    Oct 25, 2011 11:38 PM GMT
    So far I haven't read any real answers to the questioning about differences in regulations between now and when Bush was in Power. There has been a reference to Obama's health insurance program, but from what I understand there aren't many changes from that program as of now and that is an unlikely excuse.

    In republican politics particularly, we have a wide use of propaganda tactics to keep stating whatever propaganda they deam workable to win votes, then repeat that propaganda often. Soon that propaganda becomes true in the minds of the sheeple who are mere followers and study nothing out for themselves.

    Keep in mind that what has been passed as 'small business' often is far from it, it is big corps like the Koch Bro's paying for the repetition of these propaganda tactics, one of the most successfull of which, has been this mantra about small business not expanding and not hiring because they are in doubt about future regualtions and taxes. These corps. spreading this propaganda have a lot of money to spend to make believers of those hearing their self promoting propaganda, since they bought legislation that gives them more and more money to spend on such propaganda. While the public who don't have jobs because their jobs were sent overseas because of the above system, are not getting their messages heard, much less repeated.

    What a system !!! the corps. have nearly endless funds to come up with polls, graphs and to pay for talking heads on Cable News as well as owning the media that spreads its propaganda. Repeat it enough over an election cycle and Walla !!! its the facts that voters go by, whether true or not. No I don't have any graphs or polls to prove the above, but I can read and see whats happening in our US system of endless election cycles where truth is what it hard to find and well hidden behind well funded propaganda such as what Riddler quotes.


    As for the most serious aspect of this poll, that of going out of business, the problem is the unfortunate result of such a severe recession brought on primarily by actions of Banks and Wall street, not regulations. Its a known fact that if controls/regulations had been in place and inforced , that the economic crash could have been largely avoided.

    There's so many holes in this 'blame the regulations' theory that its laughable.
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    Oct 25, 2011 11:48 PM GMT
    southbeach1500 said
    Christian73 said
    southbeach1500 said
    Where are you getting your "least regulations" stats sorted by country?


    From the World Bank's 2012 "Doing Business" Report available above.



    What page?

    [url]http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Annual-Reports/English/DB12-FullReport.pdf[/url]


    Do you want me to come over and read it to you? icon_rolleyes.gif
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    Oct 26, 2011 12:43 AM GMT
    Now we need a poll of the topic poll participants on how much exposure they've had to the propaganda that small businesses aren't hiring or expanding because of regulations and unknown tax burdens.

    We should have a poll on how many of these poll participants are republicans and TBaggers who fall for this propaganda.


    We should also have a poll taken of these Poll Participants as to their business incomes, so we know that they really are falling in the class of 'small business'. Since its been exposed that the republican mouth pieces , Cantor, Boner, McConnel were using information from large corps, to spread this propaganda about regulations and tax burdens strangling small business as a means of attracting voters to their cause.


    The far right has multiple sources of funding to produce any poll, graph, 'un'scientific study and on and on from their corporate re-election sponsors, to promote whatever propaganda they want to forward. Quite a handy but crooked election system we have isn't it. Works really well for well funded re-election causes, but it doesn't do much for the masses who don't have such funds to forward the remedies to their problems, like exposing businesses being subsidised for sending their jobs overseas.


    I don't trust any such polls as proof of where our problems with business come from.